Bitcoin drops below $62K as crypto market faces renewed pressure

Bitcoin's (CRYPTO:BTC) price slipped below the $62,000 threshold on Tuesday, marking a significant downturn after peaking at $65,103 just three days earlier.

The drop saw Bitcoin hit a low of $61,455 per coin, contributing to a broader shake-up in the cryptocurrency market.

This decline led to the liquidation of $20.28 million in Bitcoin long positions, alongside $40.29 million in Ethereum longs.

The global crypto market cap also felt the impact, dropping by 1.83% to settle at $2.17 trillion.

Bitcoin (BTC) experienced a 2% decline against the U.S. dollar, with its price falling from an intraday peak of $63,547 to a low of $61,455 before stabilizing just below $62,000 by late afternoon.

Ethereum (CRYPTO:ETH) saw an even sharper decline, with its value dropping 3.7% to $2,583 per ether.

Among other leading cryptocurrencies, Solana (CRYPTO:SOL) fell by 1.97%, while XRP (CRYPTO:XRP) managed to buck the trend, gaining 2% on the day.

Dogecoin (CRYPTO:DOGE) also declined, losing 1%.

Outside the top ten, Helium (CRYPTO:HNT) stood out as the day’s top performer, rising 8%, while Akash Network (CRYPTO:AKT) experienced the steepest decline, losing 5.85%.

The overall downturn in the crypto market resulted in significant liquidations, particularly in the derivatives market.

By 4 p.m. EDT, approximately $99.12 million in long positions had been wiped out, with $60.57 million in ETH and BTC long positions alone.

In total, 47,003 traders faced liquidations over the past 24 hours, with the largest single liquidation order involving a $2 million ETH trade on Okx.

This recent dip comes as the crypto market struggles to regain stability following turbulence earlier in August.

Bitcoin and other crypto assets had started to rebound following comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.

Market participants are now closely watching the upcoming Federal Open Market Committee (FOMC) meeting, where a potential rate cut is anticipated.

At the time of writing, the Bitcoin price was $59,374.28.