💥💥Crypto Major Downturn💥💥
In the recent past, investors have lost nearly half a trillion dollars in the crypto market crashing down. Following these losses, there was a global meltdown that reflected an catastrophe of August 2023.
Massive Bitcoin and Ethereum Dumping
The cryptocurrency market’s star BTC has witnessed an exceptional selloff over the last period. The current 18% slump of Bitcoin since beginning month indicates the return to crypto winter. This event came as a surprise to the BTC market and caused concern among investors.
Bitcoin and Ethereum hurt by Japan’s 25 basis point interest rate rise. Ethereum fell by 22%, while Bitcoin dropped by 12%. The Japanese stock market suffered its worst day since 1987 when Nikkei index reached levels seen during real estate bubble burst. It could be worse than Black Monday of October 19th 1987.
The world is experiencing waves of collapse in financial systems. Korean South Korea cancelled all sale orders leading overnight losses of over $500 billion for US “Magnificent Seven” stocks. There is a growing likelihood of recession and market volatilities due to declining employment rates in the US.
Market Reaction and Public Perception
Despite concerns, bulls and individual investors see this decline as a buying opportunity. Social media posts about “buying dip” have increased; however Santiment data suggests that they are higher than ones predicted earlier and this may happen when US markets open with even worse drop.
“Purchase talks rose but not as much as expected in this dramatic fall,” said the company. Opening US markets should spark more activity. Emotional selling will accelerate bitcoin market recovery.”
Bearish emotions in the market led to a decrease on the fear-greed index for cryptos up to level 26 out of hundred possible ones meaning extreme fear. However, any shift from neutral towards extreme anxiety can still result in a comeback despite big losses suffered by markets. Even though buyers are coming in the market may remain negative for a while.
