$55 Billion Drained From Crypto Market in August: Report

$55 billion was drained from the cryptocurrency market in August, with Bitcoin's price decreasing by over 10%. Read more about the market decline and the factors contributing to it.

Posted 10 months ago in Market Analysis

In August, the price of Bitcoin (BTC) decreased by over 10%, the largest monthly decline since November 2022. Along with that, over $55 billion worth of capital was drained out of the market, according to reports.August was a highly volatile month for the crypto market, as Bitcoin fell from the highs of nearly $30,000 to $25,200. Mainly, the volatility during August was news-driven.Capital Outflows Worth $55 BillionAccording to a Bitfinex report, roughly $55 billion was withdrawn from the market in August across Bitcoin, Ethereum (ETH), and five major stablecoins. The crypto exchange used the Aggregate Realized Value metric to derive the result.Bitcoin Miners Contributed Heavily to Selling PressureWhile the supply of Bitcoin in the long-term holders’ wallet is nearly at its all-time highs, the miners have been selling. The report mentioned that Bitcoin miners are the only long-term cohorts exiting their on-chain positions. According to the crypto exchange’s estimates, Bitcoin’s cost of production is nearly $24,287 per BTC. Bitfinex believes that the miners have been selling because the production cost is nearly equal to the market price of Bitcoin. Moreover, the data from Glassnode shows that the Bitcoin balance in the miner wallet has plummeted sharply since Aug. 25.Lastly, the report mentions that the crypto market is experiencing event-based volatility. It takes the example of Bitcoin’s crash to $25,200 on Aug. 17, and Grayscale’s victory against the Securities and Exchange Commission (SEC) on Aug. 29, which caused an 8% pump.Do you have anything to say about crypto August data or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.Disclaimer: In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Last updated 9/16/2023, 1:08:06 AM

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