Bitcoin Dives Below $56,000 After Stock Market Rout

The price of Bitcoin plunged as low as $55,746 late Tuesday, according to CoinGecko data, seeing a sudden dip hitting within an hour of the stock markets in Asia coming online.

The drop follows a dismal day on the U.S. stock market, with tech giant Nvidia weighing down an overall 600 point dip in the Dow Jones Industrial Average. Across the Pacific, the Nikkei stock index started its day down 1,000 points from its prior close.

Bitcoin has slightly rebounded, trading at $56,463 as of writing, down nearly 3% for the day.

“We’ve seen $767 million of outflows over the last five trading windows,” Pav Hundal, lead market analyst at crypto exchange Swyftx, told Decrypt. “If U.S. payroll data surprises to the downside, it’s possible that things will get worse before they get better.”

The non-farm payrolls report, which excludes data from farm workers, government employees, and private households, is due on Friday.

Ethereum fell as well, dropping over 4% Tuesday to as low as $2,318 alongside Bitcoin’s dip. It’s trading at $2,339, erasing limited gains it had made since Aug. 7.

The sudden fall echoed a similar drop at the same time last Tuesday, this round triggering a one-hour surge of $95 million in liquidations, the vast majority—$91 million—in long positions that had bet on the asset going up. It added to over $169 million in long positions rekt over the prior 24 hours, according to CoinGlass.

The red candles dripped down the cryptocurrency charts. Solana (SOL) is down 6.4% for the day, trading at $125, XRP is down 3.1% to $0.55, and Dogecoin (DOGE) is down 5% to $0.094.

Meanwhile, Crypto’s overall fall Tuesday only pushed Telegram-linked Toncoin (TON) down harder. TON fell out of the top-10 cryptocurrencies by market cap, and its price fell below $5, weighed down by the recent arrest of Telegram founder Pavel Durov in France and network outages. TON is down more than 8% for the day, trading at $4.78.