Bitcoin breaks below $50,000.

The world's largest cryptocurrency fell to its lowest level in nearly six months, while the second-largest, Ether, experienced its sharpest decline in almost three years.

According to the data CoinDesk , since early this morning, Bitcoin The volatility began when the market price gradually dropped from below $60,000 to around $54,000 by just after 8 AM. Afterward, the currency recovered slightly and fluctuated around that level.

Early in the afternoon, the market experienced a new wave of volatility. Around 1:24 PM, Bitcoin broke through a key support level, plummeting to $49,314 per unit – its lowest level since mid-February. In 24 hours, the world's largest cryptocurrency lost approximately 14% of its market value.

The loss of this support level is very serious because many experts had previously predicted that Bitcoin needed to hold $50,000 to prevent a further pullback to $48,000 that would occur shortly thereafter.

Even more brutal, Ether - digital currency The world's second-largest cryptocurrency fell from over $3,500 to $1,700 per coin, a drop of 25%. This was the worst daily correction since May 2021. Other cryptocurrencies such as Binance Coin, Solana, XRP, etc., all dropped by 20% or more.

This development caused the Fear and Greed Index to lean toward negative sentiment, hitting its lowest level since early July. This index tracks volatility, prices, and social media data to indicate whether investors are fearful—often a sign of a local bottom—or greedy, marking a market top.

The market turned red as cryptocurrency futures contracts recorded over $840 million in liquidations in the past 24 hours, creating a sell-off worse than yesterday's. The current volatility is being catalyzed by a stronger Japanese yen and rumors of market maker Jump Trading liquidating its cryptocurrency business.

In particular, Ether futures contracts recorded over $304 million in liquidations, higher than Bitcoin. Futures contracts tracking Solana, Dogecoin, XRP, and Pepe also recorded a cumulative liquidation of $75 million.

Over 200,000 individual traders have been subjected to liquidation orders. Data from the Huobi cryptocurrency exchange shows that approximately 87% of those affected were traders who had placed long orders, meaning they were betting on higher prices.

Beyond cryptocurrencies, the global financial landscape is experiencing significant volatility amid a fierce stock sell-off as investors worry about the possibility of an economic recession in the US. This surge comes after the shocking July US jobs report showed much weaker-than-expected figures, raising concerns about the risk of an economic downturn.

Amid signs of a slowing US economy, traders are heavily betting on the Federal Reserve cutting interest rates soon. Economists at leading financial institutions such as Citigroup and JPMorgan Chase even predict the Fed could cut rates by as much as 0.5 percentage points at its September and November meetings.

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