On the morning of August 6th, Bitcoin’s price showed signs of recovery, hovering around the $55,000 mark after experiencing significant volatility on August 5th.
The trading volume of this largest cryptocurrency by market capitalization reached $109.4 billion, a 92.54% increase compared to August 5th. The total market capitalization was recorded at $2.014 trillion this morning, a 2.41% increase compared to 24 hours earlier.
August 5th can be considered a dark day for Bitcoin investors, with extreme fluctuations leaving many investors unprepared. The cryptocurrency market saw its biggest one-day drop as Bitcoin fell to a low of around $49,500, contributing to a massive $370 million in liquidations in just one hour. And in just one day, Bitcoin lost around 20%.
Although this was a severe decline, it is not unprecedented. Many investors were reminded of the crash caused by COVID-19 in 2020 when Bitcoin lost over 50% of its value within 24 hours – from $9,000 down to $4,000 per BTC.
There are various predictions regarding the potential future movements of this cryptocurrency. Some investors believe that Bitcoin will quickly recover, attributing the current volatility to temporary sell-offs by investors.
However, others predict that Bitcoin has not yet reached its true bottom, and there is a possibility it could decline further.
Prominent analyst Scott Melker predicts that Bitcoin could drop below $45,000 before September.
“Polymarket traders are betting that Bitcoin will continue to drop, predicting a 45% chance it will fall below $45,000 before September. This sentiment spiked to 65% during early European trading hours amid many liquidations,” Melker stated in a post on August 5th.
Related news: Why the Crypto Market is in Red with Bitcoin Down 20%
