The sharp decline in Bitcoin and cryptocurrencies continued on Monday morning. The largest cryptocurrency, which exceeded $70,000 on Monday last week, dropped to $49,000 on the morning of August 5.

Has the US entered a recession?

In the USA, which is seen as the world’s largest economy, it has been seriously discussed recently whether the Fed will make a soft or hard landing. However, it seems that the Fed, which could not reduce inflation to 2%, could not prevent a hard landing. The declines in the US markets, which started last week and hardened on Friday, spread to Asian markets on Monday morning. The Japanese Nikkei 225 fell by 6%. Experts stated that the US is now entering a recession, while those who made futures and leveraged transactions in cryptocurrencies suffered the most damage.

$1 billion wiped out

The total value of crypto positions liquidated in the last 24 hours due to the sharp declines exceeded $1 billion. Long positions accounted for $900 million of this figure.
Bitcoin positions of $350 million and Ether positions of $340 million disappeared.
The highest amount of liquidation was seen on the Binance and OKX exchanges. The liquidated crypto position value on the two exchanges was $398 million and $310 million, respectively.

Bitcoin, where very sharp price movements are seen, is trading at $50,800 in the minutes the news is written.