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Bitcoin drops below $60,000 - these are the reasons

The crypto market has collapsed again: Bitcoin, Ethereum and other cryptocurrencies are writing red numbers.

By Mike Hesp
• 2 min read
Bitcoin drops below $60,000 - these are the reasons

The crypto market has collapsed again: Bitcoin, Ethereum and other cryptocurrencies are writing red numbers. Who is responsible for the sudden price correction?

On the night of Aug. 27-28, Bitcoin collapsed to temporarily just below $58,000. At the time of writing, the largest cryptocurrency by market capitalization is listed at $59,400, with a daily loss of about 6%.

With a valuation of $1.17 trillion, BTC is the tenth most valuable asset in the world.

The rest of the crypto market also fell significantly. Ethereum lost 8%, Solana 7% and Polygon (MATIC) as much as 10%. The total market capitalization fell six percent and now stands at $2.09 trillion.

According to data from Coinglass liquidated about $321 million due to the price correction. 88% of that came from long positions, that is, from market participants who were speculating on higher prices and were surprised by the sudden drop.

According to the motto of Warren Buffett: "Be greedy when others are afraid and be afraid when others are greedy." In recent days, the Fear & Greed Index has been steadily declining and currently stands at 46 points. The mood is neutral.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.