- Bitcoin (BTC) fell to near $58,000 as cryptocurrencies plunged.
- 0DOG tokens crashed due to Bitcoin losses.
Bitcoin has fallen more than 6% over the past 24 hours, trading near $58,000. The cryptocurrency market cap has also plummeted as a red sea engulfs altcoins.
Major altcoins have seen massive declines, with the total market cap down more than 7% to $2.16 trillion. Meanwhile, Bitcoin Dog has plummeted, while Ethereum, Solana, Pepe, and Polygon have also tumbled.
Bitcoin plunges amid massive liquidations
BTC briefly traded as low as $58,090 on Bitstamp and $58,025 on Coinbase on Wednesday morning before recovering slightly to rise above $59,200.
While there is no clear cause for the cryptocurrency sell-off, the widespread losses suggest general weakness in risk assets.
Santiment analysis also suggests that the recent pullback was a result of a massive bet on the bullish momentum. The greed that hit the market on August 25 was quickly met with liquidation. The market intelligence and on-chain analytics platform wrote on X:
Data from Coinglass Total cryptocurrency liquidations have surged by 208% over the past 24 hours, to over $330 million. Most of this, around $295 million, is long positions, resulting in over 90,800 traders being liquidated during the period.
The largest liquidation was on Binance’s ETH/BTC position, worth $12.67 million.
Bitcoin Dog, Similar to BTC Sell
While Ethereum fell more than 9% to under $2,450, Solana is changing hands near $144. Polygon, Pepe, and Sui lost double digits.
Bitcoin Dogs, a cryptocurrency recently launched on major exchanges Gate.io, MEXC, and Uniswap, is also reflecting the downtrend.
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The 0DOG price has plummeted from its all-time high of $0.04934 recorded on August 22nd to the current price of $0.01006. The token has seen a massive 54% drop in 24 hours, showing how a plunge in the price of a top cryptocurrency can have a significant impact on its associated tokens.
What’s next for BTC, 0DOG?
At the time of writing, BTC was trading around $59,220 and still in a downtrend.
The bears could extend the BTC price decline, with the low seen on August 5th being a possible support level. The same scenario could apply to Bitcoin Dogs, which made history with the first BRC-20 token presale on the Bitcoin network.
Gaming and NFT projects are entering BTC’s growing Layer 2 market, and are likely to grow alongside the flagship cryptocurrency.
But what shows that a reversal is possible?
“Whenever the funding rate gets extremely high in either direction, there is always a high probability of liquidation and a market surge in the opposite direction. Expect the funding rate to stabilize (or potentially start to tilt towards a short-term bias) as a signal that BTC and other assets are about to start to rally again,” Santiment observed.
Therefore, a downtrend can provide an opportunity to buy at lower prices. To learn more about Bitcoin Dogs, visit their website first.