Crypto Market Crash: BTC and ETH Plummet on Global Market Turbulence
The cryptocurrency market took a sharp downturn on Sunday evening, sending shockwaves through the industry. Bitcoin plummeted to levels not seen since February, while Ethereum fell back to December prices.
BTC dropped 12% in 24 hours and is now down 20% week-over-week. ETH, meanwhile, plummeted 21% in a day and lost 30% in a week. This severe decline has wiped out all of Ethereum's gains for the year, leaving it 3% lower than its value on January 1st.
The downturn is attributed to several factors, including the Bank of Japan's interest rate hike last week, which sent the yen soaring and triggered a sell-off in global markets. The Nikkei stock index tanked, with a 6% drop early Monday morning marking a 15% decline in just three days.
The Federal Reserve also played a role, as their decision to hold interest rates steady but hint at a potential September cut failed to meet market expectations. Traders have already priced in a 100% chance of lower U.S. rates in September and a 71% chance of a 50 basis point cut.