Bitcoin Plunges Over 4%, Falls Below $57,000; Ethereum Drops More Than 6%, Dips Below $2,400

According to an analysis by Bitcoin.com, which reviewed Bitcoin’s price history following the 2016 and 2020 elections, BTC's price peaked in December 2017 and November 2021, respectively. For example, during the U.S. elections on November 5, 2016, BTC was trading at $703 per coin, and by the end of 2017, it had soared to nearly $20,000. This suggests that the value of BTC significantly increases after each election. However, the peak of each bull market tends to occur about a year after the election.

August was the most difficult month of the year for Bitcoin miners, with mining revenue dropping by $99.75 million compared to July, reaching the lowest level since September 2023. The on-chain transaction fees collected in August also decreased, generating a total of $85.136 million from subsidies and fees, of which $20.76 million came from on-chain fees. This marks the lowest level since last year, with a reduction of $4.14 million from July.

September is usually a challenging month for Bitcoin. According to data monitored by Spot on Chain, over the past ten years, Bitcoin has shown an upward trend in September in only three years: 2015 (+2.35%), 2016 (+6.04%), and 2023 (+3.91%). Although September typically sees declines, a downturn is not inevitable. Factors such as negative performance in August could help prevent a downturn in September. Additionally, factors like alleviated major selling pressures, steadfast long-term holders, the potential emergence of a Bitcoin ETF as a new buying force, and favorable conditions in interest rates, capital, and regulatory environments could support the market.

The Research Director at CryptoQuant recently shared a detailed Bitcoin chart on Platform X, highlighting a concerning trend: the BTC market cycle indicator has re-entered a bearish phase. This is crucial for traders and investors as it defines the overall strength and direction of the market, and provides insights into potential price movements based on historical trends. According to the analysis, $56,000 is a key support level that must be maintained to avoid a deeper, more destructive pullback. If Bitcoin fails to hold this level, the likelihood of a larger downturn will increase. Such a potential decline could further exacerbate the anxiety of investors, who are already struggling with the volatile price movements seen in recent weeks.

According to CryptoSlate, the 'Henley Cryptocurrency Adoption Index 2024' was released by immigration consultancy Henley & Partners on August 30, 2024. The report shows Singapore's leading global cryptocurrency adoption with a score of 45.7 out of 60. It assessed 28 countries based on public adoption, infrastructure, innovative technology, regulatory environment, economic factors, and tax friendliness. Hong Kong and the UAE ranked second and third, with scores of 42.1 and 41.8, respectively. Notably, Asian countries hold five of the top ten spots, with Malaysia and Thailand ranked eighth and tenth, respectively.

Crypto analyst Ali stated on the social platform X that Bitcoin is currently facing a key price resistance level. Ali emphasized that the Short-Term Holder Realized Price, currently around $63,250, has been a difficult level for BTC to break through since June 22. In a downtrend, this price level often becomes resistance because short-term holders are more inclined to sell when the price falls below their purchase price. The analyst warned that the market might face continued selling pressure until BTC can re-establish this area as a support level.

According to blockchain security company Immunefi, the digital asset industry experienced its lowest monthly losses of the year in August, with losses from hackers and fraud totaling only $15.1 million. This figure represents a significant 38% decrease compared to August 2023, when losses amounted to approximately $24.6 million, and a staggering 94.5% drop from July 2024. The report noted that all hacking attacks occurred in the DeFi sector, with most of the losses stemming from a highly publicized incident involving the Ronin Bridge vulnerability, which led to a loss of $12 million. However, these funds were later returned as the 'attack' was orchestrated by a white-hat hacker.

Data from CryptoSlam indicates that NFT sales on the Bitcoin chain in August totaled approximately $60.5 million, marking the lowest level since November 2023. Last month, transactions involving Bitcoin chain NFTs numbered about 101,880, with an average sale price of $593.97. There were approximately 38,900 unique buyers and about 29,600 unique sellers during this period.

On July 30, the Russian State Duma, during its second and third readings, approved the use of Bitcoin for cross-border transactions starting September 1, 2024, as part of an experimental legal regime (ЭПР). International media have reported that the administration of Russian President Vladimir Putin has authorized the use of cryptocurrencies such as Ethereum (ETH) and the USDT stablecoin, not limiting usage to the central bank digital currency (CBDC). This represents a significant shift in Russia's stance on cryptocurrencies and provides an experimental platform for assessing the feasibility and risk control of digital currencies in practical applications.

After experiencing net outflows for four consecutive days, culminating last Friday, US-based spot Bitcoin exchange-traded funds (ETFs) incurred a relatively small overall net loss in August, totaling only $94 million. According to data from SoSoValue, August 23 saw a net inflow of over $250 million into spot Bitcoin ETFs, marking the best performance day of the month. In contrast, the worst day was August 2, with a net outflow of $237 million. Due to a decline in Bitcoin prices from earlier highs this month, the total net assets held by all commercialized spot Bitcoin ETFs fell by $4.24 billion to approximately $53.8 billion, primarily because of the decrease in Bitcoin's value since the beginning of August.

Data from Glassnode indicate that Bitcoin's average hash rate has been steadily growing over the past year and has experienced significant growth in 2024. Historically, the hash rate usually aligns with Bitcoin's price trends, reflecting miners' confidence and broader market sentiment. Recent charts show that, despite price fluctuations, Bitcoin's hash rate remains stable at historical highs, around 650 EH/s. This trend suggests that miners continue to invest in network security, possibly in anticipation of a price increase. Even amid market volatility, a sustained hash rate could imply a strong belief in Bitcoin's long-term value proposition.

Crypto analyst Ali stated on the social platform X that the Bitcoin exchange transaction volume momentum indicator reveals a continued decline in exchange-related on-chain activity. This typically indicates decreased investor interest in Bitcoin and reduced network utilization.