The post This Is Why Bitcoin (BTC) Could Drop to $40K: CryptoQuant appeared on BitcoinEthereumNews.com.

Bitcoin tumbled more than 15% on Monday, briefly dipping below $50,000 amidst concerns of a US recession and growing geopolitical tensions in the Middle East. This was the first time since February that BTC fell below this threshold before rebounding to around $52,000. Experts suggest that the crypto asset could see more downsides. More Pain for Bitcoin? CryptoQuant’s latest analysis indicates that Bitcoin could potentially drop to $40,000, signaling a challenging period for investors. The crypto analytic platform highlighted that traders are currently experiencing their most negative unrealized profit margins since November 2022. This downturn reflects a significant shift in market sentiment, with increased selling pressure as traders seek to mitigate losses amidst an uncertain economic backdrop. As a result of Bitcoin’s massive fall, the percentage of holders in profit dropped to 75%, as per IntoTheBlock’s observation. This is a significant decline and the lowest level seen since January, when Bitcoin’s price formed a local bottom around $39,000. Bitcoin wasn’t the only asset affected by intense selling pressure. Ethereum was down by more than 22% over the past 24 hours, which dragged its price down to $2,264 at the time of writing. During the same period, Solana and XRP were also down by over 18.2% and 16.6%, along with the rest of the market. Meanwhile, Dogecoin declined by over 20%. Over $1 Billion Liquidated The bloodbath triggered the liquidation of $1.08 billion in crypto-tracked futures over the past 24 hours. According to the data compiled by CoinGlass, $919.62 million long positions were liquidated, while short trades accounted for $162.45 million. Bitcoin was hit hardest, seeing over $371 million in liquidations, with longs accounting for $310.26 million and shorts for $61.22 million. Ethereum followed suit, with nearly $353 million liquidated during the same timeframe, including $303 million from longs and $49.6…

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Filed under: News - @ August 5, 2024 2:18 pm