**Market Mayhem: $2.9 Trillion Vanishes, Crypto Takes a Hit**

On August 2, stock markets experienced their worst day since the 2020 COVID crash, wiping out $2.9 trillion. This downturn has also shaken the crypto markets, with Bitcoin (BTC) dropping 27% and Ether (ETH) down 34%. Over $1.13 billion in futures positions were liquidated, pushing the Fear & Greed Index from greed (74) to fear (26).

The CBOE Volatility Index (VIX) hit 65, signaling extreme market turbulence. Analysts point to recession fears and skepticism about the US Federal Reserve's ability to curb inflation without causing collateral damage.

Japan's recent interest rate hike and disappointing US tech earnings have added to the market's woes, reigniting fears of an AI bubble. Geopolitical tensions between Israel and Iran further exacerbate market anxiety, driving investors to seek cash over assets like Bitcoin.

Financial experts suggest that Bitcoin's price could continue to decline, potentially reaching $40,000. Market participants are advised to stay informed about macroeconomic events that could influence future market trends.