Bitcoin plummets over 12%, hitting a new low of $54,000 amid global market downturn.
Crypto liquidations reach $800 million in 24 hours, with Ethereum and Bitcoin leading losses.
Nikkei index enters bear market, falling 20% from July highs, signaling widespread economic concern.
Amid growing concerns over a potential U.S. recession, global financial markets experienced a significant downturn on August 5, with cryptocurrency values plummeting alongside traditional stock indices. The Bitcoin price notably decreased by over 12%, falling to $54,000 and breaching July's low, reflecting heightened investor anxiety and increased sell-off activities across risk assets.
Alarming Predictions for Bitcoin ETFs
During the Asia trading hours on Monday, the Bitcoin price continued its downward trajectory, briefly touching $52,386. This marked a 26% decrease from its peak earlier this year. Ethereum and other altcoins have also been heavily impacted, suffering extensive losses over the week.
Economist Peter Schiff, known for his critical stance on cryptocurrencies, predicted further challenges for Bitcoin ETFs, suggesting a potential 15% drop as markets open, which could lead to significant liquidations. Schiff also specifically warned of a potential "crypto Black Monday," a scenario that appears to be unfolding as markets across the globe experience heightened volatility.
https://twitter.com/PeterSchiff/status/1820152935940300973 Liquidity and Market Sentiment
According to CoinGlass data, approximately $800 million in tokens were liquidated in the last 24 hours of trade, with Ethereum and Bitcoin being the most affected.
This sell-off matches a larger market trend. Japan's Nikkei index fell by over 20% since its July highs, ushering in a bear market. Similarly, U.S. futures fell dramatically, with Dow Jones, S&P 500, and Nasdaq 100 futures down substantially.
This broad market selloff reflects mounting concerns about a future US recession, influencing investor sentiment worldwide and spreading caution in asset trading.
The ongoing market crash mirrors past financial crises where assets typically rebound over time. Current economic indicators suggest that the Federal Reserve might intervene, potentially mirroring actions taken during the COVID-19 pandemic, such as implementing significant rate cuts. Such measures could redirect capital flow back to riskier assets, including stocks and cryptocurrencies, potentially stabilizing markets.
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The post Bitcoin ETFs Predicted to Drop 30% from January Levels on Monday, Peter Schiff Warns appeared first on Crypto News Land.
