Cryptocurrency Market Plummets: $600 Billion Wiped Out as Bitcoin Faces Massive Sell-Off

·

Bitcoin Tumbles Amidst Heavy Selling Pressure

On August 3, the cryptocurrency market experienced severe volatility, with Bitcoin leading a sharp downturn. Prices plummeted through key support levels at $63,000, $62,000, and $61,000, bottoming at $60,517—a 7% drop within hours.

Altcoins mirrored the decline:

Per CoinGecko, total crypto market capitalization fell below $2.2 trillion, erasing **$880 billion (¥6.3 trillion) in value. Coinglass data revealed 100,000 traders liquidated**, totaling $330 million in losses—87% from long positions.


Market Weakness and Macroeconomic Headwinds

Since July, Bitcoin has fluctuated between $55,000–$70,000, struggling to sustain upward momentum. Analysts attribute the stagnation to:

"Bitcoin remains in a downtrend," notes Zhao Wei, OKX Research Senior Analyst. "Global macro uncertainty and Fed rate decisions will dictate its next move."

Technical indicators worsened:

👉 Why Institutional Investors Are Flocking to Crypto


Miners’ Crisis Intensifies Post-Halving

April’s Bitcoin halving slashed mining rewards by 50% (6.25 BTC → 3.125 BTC), squeezing revenue streams:

| Metric | Impact |
|----------------------|---------------------------------|
| Mining Income | ↓ 50%+ |
| Operational Costs | Unchanged (electricity, rigs) |

Consequences:


FAQs: Navigating the Crypto Crash

Q: Should I buy Bitcoin now?
A: Market conditions remain high-risk. Dollar-cost averaging may mitigate volatility.

Q: How long will the downturn last?
A: Historically, August sees weak performance. Watch for Fed policy shifts.

Q: Are altcoins safer than Bitcoin?
A: Altcoins often show higher beta—they fall harder in downturns but may rebound faster.

Q: What’s driving miner sell-offs?
A: Halving-triggered revenue drops force miners to liquidate holdings to cover costs.

👉 Expert Strategies for Crypto Winter Survival


Outlook: Volatility Ahead

Analysts project Bitcoin may trade between $61,000–$70,000 short-term. Key factors to monitor:

  1. U.S. inflation data
  2. ETF inflows
  3. Miner capitulation levels

The crypto market remains highly sentiment-driven. Investors should prioritize risk management.


**Keywords**: Bitcoin crash, cryptocurrency sell-off, mining crisis, market volatility, altcoin performance, trading liquidation, halving impact, crypto winter  

**SEO Notes**:  
- Natural keyword integration (e.g., "Bitcoin crash" in headings/FAQs)