The crypto market saw a significant drop in value as investors continued to abandon high-risk assets.
Bitcoin led the decline with 16% and went below $50,000 in the last 24 hours, while Ethereum plummeted over 23% and at the time of writing is trading at $2,230. According to CoinMarketCap, the total market cap is down 11%. At this point it stands at $1.84 trillion.
This decline in cryptocurrencies has coincided with a broader decline in equity markets in the Asia-Pacific region. Japan’s Nikkei 225 fell 10%, extending losses from the previous week, after the Bank of Japan announced an increase in its benchmark interest rate to a 16-year high.
At the time of writing, the leading cryptocurrency has partially recovered and is trading at $51,900, down 27% in the last week, and its market cap has fallen to around $1 trillion.
It was also reported that $1,000,000,000 was liquidated from the crypto market in the last 24 hours.
The stock market also suffered a decline last week that was related in part to disappointing earnings, a weaker-than-expected jobs report, higher unemployment and a declining manufacturing sector. The U.S. Federal Reserve chose to hold its benchmark interest rate steady and did not promise a September rate cut, which many market experts had included in their forecasts. Lower interest rates usually correlate with better performance of risky assets.
Commerzbank, one of Germany’s largest financial institutions, is making a significant move into cryptocurrency by offering Bitcoin and Ethereum trading services to its corporate clients.
For the first time in 4 years, Fed cut the rates for the first time in 4 years, which lead to a notable surge in cryptocurrency prices.
Donald Trump, the Republican presidential nominee, made headlines by becoming the first former U.S. president to make a Bitcoin transaction.
Under President Nayib Bukele, El Salvador remains committed to its daily Bitcoin acquisition strategy, currently holding assets worth approximately $354.6 million.