The price of Bitcoin plunged below $59,000 late Tuesday, according to CoinGecko data, reaching lows not seen in a week. The more than 3% fall was echoed by Ethereum, which fell below $2,500.
The sudden price drop triggered over $170 million in long-position liquidations in a single hour, according to CoinGlass, stinging investors betting for the asset prices to rise. Those liquidations were dominated by BTC and ETH investors, with $65 million and $52 million in longs rekt, respectively.
Bitcoin had seen a solid rise above $63,000 on Friday on the heels of remarks by U.S. Federal Reserve Chairman Jerome Powell signaling an interest rate cut next month. But the price of BTC stumbled yesterday, prior to the latest drop.
The price of Solana (SOL) is also down more than 6% for the day at $147. Tokens, including XRP and Dogecoin (DOGE), also saw Tuesday dips of more than 5% over 24 hours.
There doesn't appear to be a specific trigger for the quick shift, as the U.S. stock markets closed Tuesday trading mostly flat for the day.
Some analysts have pointed to the recent state of Bitcoin price movements as achieving “equilibrium,” with a recent report from crypto analytics platform Glassnode noting that it might precede a period of “heightened volatility.”
Meanwhile, in its latest report, Fairlead Strategies warned of a “seasonally weak period in September.” The firm uses technical analysis for its forecasts and suggested “another two months of corrective price action.”