Bitcoin Fell Below $53,000 And Does Not Stop With The Losses

The cryptocurrency market dropped significantly on Sunday, with investors selling risky assets.

Over the past 24 hours, Bitcoin has fallen by just over 13% and Ethereum by 21%, causing the total value of cryptocurrencies to drop by over $270 billion, or just over 12%.

This sell-off in the crypto market coincided with a broader decline in Asia-Pacific equities. Japan’s Nikkei 225 fell as much as 7%, extending losses from the previous week after the Bank of Japan raised its key interest rate to a 16-year high. In the US, the Nasdaq fell 3.4% last week, entering correction territory and marking its worst three-week period since September 2022. Amazon and Nvidia contributed to this decline.

The stocks’ recent decline was due in part to disappointing earnings, a weaker-than-expected employment report, higher unemployment, and a declining manufacturing sector. The U.S. Federal Reserve kept its benchmark interest rate steady and did not promise a September rate cut, which many market experts had expected.

The price of Bitcoin reached its lowest level since February, trading around $52,850 at the time of writing.

Ethereum fell to around $2,290, erasing its gains for the year. BNB and Solana also saw significant declines, down over 17.8% and 16.2% respectively, and Dogecoin down as much as 15%.