Crypto Market Plunges as Bitcoin and Ethereum Fall Sharply
The cryptocurrency market took a dramatic hit on Sunday evening as Bitcoin and Ethereum plummeted to levels not seen since February. Bitcoin's price dropped by 12% in 24 hours, with a week-over-week loss of 20%. Ethereum suffered an even steeper decline, falling 21% in a single day and losing 30% in the past week.
The sudden downturn has erased all of Ethereum's gains for 2024, leaving it 3% lower than its January 1st price. The CoinDesk 20 Index also took a hit, plummeting 12% in 24 hours.
The Bank of Japan's interest rate hike last week may have triggered this market chaos. The yen surged after the announcement, while the Nikkei stock index tanked. Japan's woes soon 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 keep interest rates steady but hint at a possible September cut may have also contributed to the market's uncertainty. Traders are pricing in a near-100% chance of lower US rates by September, with a 71% probability of a 50 basis point cut.