Cryptocurrencies saw their biggest three-day sell-off in nearly a year, with losses of up to $510 billion since August 2.
Cryptocurrencies, which in recent months have been moving in tandem with mainstream investment options, have been dragged along by the sharp sell-off in stocks, with the S&P 500 down as much as 4.4% in the same time frame. The broader CoinDesk 20 Index is down 12% in the past 24 hours.
Market jitters were attributed to weak US jobs data, slowing growth among major technology stocks and resurgent recession fears.
Several majors, such as Microsoft and Intel, are posting lower-than-expected second-quarter results, and market leader Nnidia has been hit by expectations of looming rate cuts in September, prompting capital to flow into smaller laggards.
Sell-off in cryptocurrencies
The price of Bitcoin plunges 8.5% to $54,162 and Ether is down 15.84% to $2,312. In the last week the losses for the two biggest cryptos amount to 20% and 28% respectively.
Several market commentators also looked at a wave of selling by Jump Crypto as an aggravating factor, with the trading firm unloading hundreds of millions of dollars in assets from its books in recent days, according to data from Arkham Intelligence.
The Crypto Fear and Greed Index – an indicator that tracks market sentiment towards Bitcoin and crypto – has fallen back to “fear” levels and is currently showing a score of 26, according to data from Alternative.me .
The Crypto Fear and Greed Index fell to a 23-day low.
Fears of a recession hit Wall Street late last week and spread to global markets, which hit the red in turn. Investors turned to the safety of U.S. Treasuries, driving the 10-year Treasury yield to break the 4% barrier and hit its lowest level since December, and gold, which posted weekly gains on concerns about escalating tensions in the Middle East East.
Source: ot.gr
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