5 August 2024 (TDI): As investors became increasingly alarmed by disappointing jobs statistics and fresh recession fears, the crypto market saw its biggest three-day sell-off in a year, losing close to $510 billion.
The S&P 500 fell 4.4% during the same period as the cryptocurrency market had a strong decline. Both markets experienced declines in equities.
Sluggish growth among big tech firms, mounting concerns about an oncoming recession, and poor job numbers all contributed to the sell-off.
There was pressure on NVIDIA because to anticipation of possible rate cuts in September, while major corporations like Microsoft and Intel reported second-quarter results that were below forecasts.
As a result, investors reevaluated their positions and capital began to flow back into smaller, underperforming enterprises.
Also read: Global Stock Markets Slump Due To Fears Of US Recession
The price of Bitcoin and Ethereum experienced a large loss during a dramatic market sell-off on August 5, resulting in the biggest three-day decline in the crypto market since mid-August 2023.
The values of Ethereum (ETH) and Bitcoin (BTC) have dropped sharply; in the last two hours alone, they have dropped 10% and 18%, respectively. As of this writing, ETH and BTC had dropped by 28% and 20%, respectively, over the previous week.
With a decline of 30.6% since July 30, Solana (SOL), a Layer-1 network, has suffered the most out of the top 10 biggest cryptocurrencies by market valued.
Based on information from Arkham Intelligence, analysts believe that Jump Crypto, a trading company that recently sold hundreds of millions of dollars’ worth of assets, is partially to blame for the sell-off.
