Bitcoin (BTC) aimed to reclaim $62,000 on August 3, as markets showed signs of recovery after a significant liquidation event.
Data from Cointelegraph Markets Pro and TradingView indicated a 3% rebound in BTC price following multi-week lows of $60,435 on Bitstamp.
This came on a day of heavy losses for global stocks, with Japan’s Nikkei dropping 6%, setting a pessimistic tone for Wall Street. Disappointing U.S. employment data added to the panic.
Bitcoin itself lost nearly $5,000, breaching several key support levels, including the short-term holder cost basis.
Liquidations surged as a result, with monitoring resource CoinGlass reporting a total crypto longs wipeout of $230 million on August 1 and 2.
“The yields are falling off a cliff in the U.S. markets as the job reports came in astonishingly bad,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, commented on X.
“Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”
Van de Poppe suggested that the recent events likely increased the chances of the Federal Reserve cutting interest rates at its next meeting in September, a move seen as bullish for crypto and risk assets.
“One thing is for certain: Rate cuts for September are confirmed,” he concluded.
