Investors are selling assets amid concerns about the deteriorating geopolitical situation in the Middle East and the state of the global economy. The capitalization of the entire cryptocurrency market fell 16% overnight to $1.8 trillion, according to data from Coingecko. This is the biggest daily drop since January 2022, writes The Block.

The price of Bitcoin fell by more than 15%, Ethereum recorded its biggest decline since 2021. The rest of the largest cryptocurrencies by capitalization, including XRP Ripple, BNB (Binance), Cardano (ADA), Solana (SOL) and Toncoin (TON), followed Bitcoin, losing between 17 and 22% of their value.

According to Coinglass, crypto traders lost more than $1 billion in liquidations in one day. More than $400 million in liquidation went to Bitcoin. The total volume of liquidations in Ethereum cryptocurrency reached 364 million dollars.

Experts believe that the downward dynamics of the price of Bitcoin has boosted the indicator of the annual moving average. It is viewed as an indicator that reflects the average price of an asset over the past 12 months. When the price of Bitcoin crosses the annual moving average of the price, it is usually considered a fairly strong signal of a change in market sentiment and indicates an increase in bearish sentiment towards Bitcoin.

Historically, this indicator has served as an important support level for the first cryptocurrency and a guide for those who bet on the rise of Bitcoin when it is above this key level.

Global stock markets have also experienced major shocks. On August 5, the Tokyo stock price index renewed its multi-year low, and American technology giants lost billions of dollars in capitalization.

Disappointing financial results from major tech companies such as Intel and Amazon sent the sector's stock prices down more than 5%. These concerns were exacerbated by the release of the US jobs report on August 2, which raised concerns about the sustainability of economic growth discussed at the US Federal Reserve (Fed) meeting on July 31.