The cryptocurrency market experienced its largest three-day sell-off in a year, shedding up to $510 billion since August 2, as weak jobs data and renewed recession fears gripped investors.
The sharp decline in the crypto market coincided with a downturn in equities, with the S&P 500 falling by 4.4% over the same period.
The sell-off was fueled by disappointing employment figures, sluggish growth among major tech stocks, and growing concerns about an impending recession.
Major companies such as Microsoft and Intel posted lower-than-expected second-quarter results, while NVIDIA faced pressure from expectations of potential rate cuts in September.
This led to capital flowing back into smaller, lagging companies as investors reevaluated their positions.
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The cryptocurrency market has seen its sharpest three-day decline since mid-August 2023, with Bitcoin and Ethereum prices dropping significantly amid a sudden market sell-off on August 5.
Bitcoin (BTC) and Ethereum (ETH) prices tumbled drastically, falling 10% and 18% respectively in the last two hours alone. As of publication, BTC and ETH have declined by 20% and 28% over the past week.
Solana (SOL), a Layer-1 network, has been the hardest hit among the top 10 largest cryptocurrencies by market capitalization, falling 30.6% since July 30.
Analysts attribute part of the sell-off to Jump Crypto, a trading firm that offloaded hundreds of millions of dollars in assets in recent days, according to data from Arkham Intelligence.
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