August 6, 2024
By Sharan Kaur Phillora
The cryptocurrency market faced a significant downturn over the weekend, with Bitcoin (BTC) and Ethereum (ETH) experiencing sharp declines. Bitcoin’s price plummeted to $53,000, marking a new low for the year, while Ethereum turned negative for 2024, erasing all its gains since January.
Here’s what we know:
Bitcoin’s price drop of 12% in the past 24 hours and a 20% decline over the week has left investors reeling. Ethereum’s situation is even more dire, with a 21% drop in the last 24 hours and a 30% decline over the week, pushing its price below the $3,000 mark. This downturn has been attributed to several factors, including macroeconomic uncertainties and market volatility.
The Bank of Japan’s unexpected interest rate hike last week triggered a surge in the yen and a significant drop in the Nikkei stock index, contributing to the global market instability. Additionally, the U.S. Federal Reserve’s indecision regarding potential rate cuts in September has added to the market’s uncertainty, leading to a selloff in both traditional and cryptocurrency markets.
The cryptocurrency market’s volatility has also been exacerbated by significant liquidations. Nearly 100,000 traders have been liquidated in the past 24 hours, with Bitcoin alone accounting for almost $300 million in liquidations. This has further fueled the panic among investors, leading to a broader market selloff.
Ethereum’s recent performance has been particularly disappointing for investors who had high hopes following the approval of spot Ethereum ETFs. Despite the initial optimism, the market has been unable to sustain the upward momentum, leading to a sharp decline in ETH prices.
The overall cryptocurrency market cap has seen a decline, with major altcoins like Solana (SOL), Cardano (ADA), and XRP also experiencing significant losses. The market’s reaction has been swift, with traders now pricing in a 100% probability of lower U.S. interest rates in September, further adding to the uncertainty.
As the market grapples with these challenges, investors are closely monitoring the situation, hoping for signs of stabilization. However, the current sentiment remains cautious, with many bracing for further declines in the near term.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
