Bitcoin took a nosedive on Monday, briefly touching $49,000, before going up to $57,000. This sparked a massive sell-off across crypto markets.
Binance, the world's biggest crypto exchange, saw net inflows of $1.2 billion in 24 hours [Tuesday]. Binance CEO Richard Teng shared this data from Defi Llama. He called it one of the highest net inflow days in 2024.
Teng tweeted: "Amid the macroeconomic climate and yesterday's market downturn, #Binance recorded a net inflow of US$1.2 billion in the past 24 hours, according to @DefiLlama's CEX Transparency metrics."
Bitcoin has since clawed its way back to around $55,000 by midday (UTC) on August 6. As of August 7, it's trading at $56,700.
Some experts reckon Bitcoin could hit $60k again soon. Anton Toroptsev, Marketing Director at Bitget, thinks it'll be a quick rebound. "By the middle of this week," he says, BTC might hit $58,000. By week's end, it could be back at $60k or higher.
So, what caused Bitcoin to tank? CryptoQuant points to macro headwinds and a broader market sell-off. Bitcoin hit $49,000, its lowest since February 14.
CryptoQuant's weekly note highlights some recent macro issues. These include higher interest rates in Japan and worse-than-expected U.S. unemployment data. The Middle East turmoil and U.K. riots didn't help either.
These factors have spooked traders. Many closed long positions in crypto futures markets. Sellers took charge.
Not all trading platforms could handle the chaos. Robinhood had to pause its overnight trading. They blamed issues with Blue Ocean ATS, their third-party execution venue.
Robinhood announced this on X (formerly Twitter). It's a bit of a bummer for night owls looking to trade.
Despite the drama, Binance's massive inflows suggest many traders see opportunity in the dip. It's been a wild ride, but crypto markets are nothing if not resilient.
The coming days will show if Bitcoin can keep up its recovery. For now, it seems the crypto crowd isn't easily fazed by a bit of market turbulence.