Bitcoin Dives 12%, Ethereum Plummets 21% Amid Global Market Turmoil
The cryptocurrency market took a sharp downturn on Sunday evening, with Bitcoin plummeting to levels not seen since February. Ethereum also suffered significantly, falling back to December prices and erasing all its 2024 gains.
Bitcoin dropped 12% in 24 hours, while Ethereum plummeted 21% in the same time frame. The week-over-week losses were even more staggering, with Bitcoin down 20% and Ethereum losing 30% of its value.
The Bank of Japan's interest rate hike last week may have triggered this market downturn, causing the yen to surge and the Nikkei stock index to tank. This economic turmoil spread to the US, with the Nasdaq dropping over 5% in two days and Nasdaq futures down 2.5% on Sunday evening.
The Federal Reserve's decision to hold rates steady but hint at a September cut also contributed to market uncertainty, causing traders to price in a 100% chance of lower U.S. rates in September and a 71% chance of a 50 basis point cut.