Analysts name the reasons for the significant drop in major digital tokens

On Thursday, August 1, the leading cryptocurrencies experienced significant fluctuations due to the publication of financial results of leading cryptocurrency companies. Bitcoin initially dropped below $ 63,000 but recovered to $ 64,000 by the end of the day, while Ethereum and Dogecoin fell by 0.85% and 3.24%, respectively.

MicroStrategy Inc., Marathon Digital Holdings Inc. and Coinbase Global Inc. published their second quarter reports after the market closed. Their reports showed both positive and negative results, which affected investor sentiment.

The main reason for the decline in the value of cryptocurrencies was the massive liquidation of long positions. According to the data, total liquidations reached $ 291 million, with 79% of them accounted for by the liquidation of long positions. This led to a sharp decline in the number of traders betting on the growth of BTC $65,241.02 Bitcoin -0.83% Market capitalization $1.29 trillion VOL. 24 hours $0.62 billion , followed by a further drop in the rate.

According to Coinglass, only 38% of the market is currently bullish on BTC, while 27% are bearish and 35% remain neutral. Rekt Capital, a popular cryptocurrency analyst, predicts that the current Bitcoin correction will not last as long as previous ones. He expects the recovery to take only 2−3 weeks.

Another analyst, Ali Martinez, drew attention to the large liquidations of long positions due to the drop of bitcoin below $ 63,000. He also warned traders that short positions could suffer significant losses if bitcoin recovers to $ 70,440, which would result in $ 2.40 billion in liquidations.