Bitcoin Plunges Below $78K Amid Market Sell-Off

The cryptocurrency market took a hit on August 31 as Bitcoin plummeted below $78,000. This decline triggered a sell-off wave across major coins, with Ethereum falling 1.3% and losing the $2,500 mark. Binance Coin dropped 0.86%, breaching $690, while XRP fell 2.18%, losing $1.4.

The market's downward trend was influenced by Federal Reserve Chair Warsh's emphasis on data dependency and inflation risks at the Jackson Hole annual central banking symposium last Friday. This shift in perspective moderated market optimism for a larger-than-expected rate cut in September, leading to capital lock-ins and triggering a sell-off on good news.

The drop below $78,000 also triggered massive long liquidations on-chain and across exchanges, forming a cascade of liquidations that accelerated the short-term downside. In the past 24 hours alone, nearly 100,000 traders were liquidated, amounting to $390 million, with long liquidations accounting for $270 million, or nearly 70%.