Bitcoin drops below $60,000 - these are the reasons

The crypto market has collapsed again: Bitcoin, Ethereum and other cryptocurrencies are writing red numbers. Who is responsible for the sudden price correction?

On the night of Aug. 27-28, Bitcoin collapsed to temporarily just below $58,000. At the time of writing, the largest cryptocurrency by market capitalization is listed at $59,400, with a daily loss of about 6%.

With a valuation of $1.17 trillion, BTC is the tenth most valuable asset in the world.

The rest of the crypto market also fell significantly. Ethereum lost 8%, Solana 7% and Polygon (MATIC) as much as 10%. The total market capitalization fell six percent and now stands at $2.09 trillion.

According to data from Coinglass liquidated about $321 million due to the price correction. 88% of that came from long positions, that is, from market participants who were speculating on higher prices and were surprised by the sudden drop.

According to the motto of Warren Buffett: "Be greedy when others are afraid and be afraid when others are greedy." In recent days, the Fear & Greed Index has been steadily declining and currently stands at 46 points. The mood is neutral.