Bitcoin Falls by 16% in One day! A Record Since FTX!
The crypto market recently experienced a particularly tumultuous trading day. This day was notably marked by unprecedented volatility since the collapse of the FTX exchange platform in 2022. According to analysts, Bitcoin’s intraday volatility reached record levels, with a price fluctuation of 19% in a single day.
Bitcoin experiences its most volatile trading day since the collapse of FTX!
On August 5, 2024, Bitcoin plummeted by over 16% at one point, before stabilizing around $54,333. This sharp drop was accompanied by a significant increase in trading volume, reaching $28 billion! The highest since the collapse of FTX. Global markets were also affected by this volatility, with the VIX index, often called the fear index, soaring above 60.
The reasons for this extreme volatility are multiple. On the one hand, global financial markets have been shaken by increased risk aversion, pushing investors to withdraw from riskier assets like cryptos. On the other hand, the decline in leveraged bets on Bitcoin was not as severe as during the collapse of FTX. This contributed to some resilience in the market.
An uncertain future for BTC?
Despite this tumultuous day, some analysts remain optimistic about Bitcoin’s future. They point out that Bitcoin’s ability to rebound after such declines shows a certain maturity in the market. But also, a continued confidence among crypto investors. However, this volatility also reminds us of the inherent risks in investing in cryptocurrencies, where price fluctuations can be quick and unpredictable.
The trading day of August 5, 2024, will go down in history as one of the most volatile since the collapse of FTX. It highlights the challenges and opportunities in the Bitcoin market, while emphasizing the importance of prudence and risk management for crypto investors.
