Bitcoin Slumps to February Lows as Market Panic Spreads

The cryptocurrency market has taken a sharp downturn, with Bitcoin plummeting to levels not seen since February. The BTC maximalists had been hoping for a surge, but it seems that bear sentiments have finally prevailed.

Bitcoin dropped 12% in 24 hours and is down 20% week-over-week. Ethereum fell even harder, plummeting 21% in a day and losing 30% in a week.

The market's woes can be attributed to several factors, including the Bank of Japan's decision to hike interest rates last week. This led to a surge in the yen, causing the Nikkei stock index to tank. The US market also took a hit, with the Nasdaq dropping over 5% in two days.

The Federal Reserve's decision to hold rates steady but seem hesitant about a September cut has added to the market's anxiety. Traders have priced in a 100% chance of lower U.S. rates in September and a 71% chance of a 50 basis point cut.