According to CoinDesk: Bitcoin (BTC) has plunged to below $52,000, a level not seen since February, as a broad market selloff in cryptocurrencies intensified over the weekend. Ether (ETH) also faced significant losses, dropping to prices last observed in December. The decline was exacerbated during Sunday evening U.S. trading hours, leading to a widespread panic in the markets.

In the past 24 hours, Bitcoin has fallen by 12%, contributing to a 20% drop over the last week. Ether's situation is even more dire, with a 21% decline in the past day and a 30% decrease over the week, erasing all its year-to-date gains and leaving it down roughly 3% since the beginning of the year. The broader CoinDesk 20 Index reflects this trend, showing a 12% decline over the same period.

The selloff in crypto appears linked to the Bank of Japan's recent decision to hike its benchmark interest rate, leading to a surge in the yen and a sharp decline in the Nikkei stock index. The Nikkei dropped another 6% early Monday, bringing its three-day decline to about 15% and its total loss from mid-July to roughly 20%.

The turmoil extended to U.S. markets, where the Nasdaq fell over 5% in the last two sessions of the previous week. Nasdaq futures were down by 2.5% on Sunday evening. The U.S. Federal Reserve also contributed to market uncertainty, holding rates steady but signaling uncertainty about potential rate cuts in September, which many investors had expected.

The markets are now pricing in a 100% chance of a rate cut by the Fed in September, with a 71% probability of a 50 basis point cut and a 29% chance of a 25 basis point reduction. Meanwhile, the yield on the U.S. 10-year Treasury note has dropped to 3.75%, down from 4.25% just a week ago, and significantly lower than the current federal funds rate target of 5.25%-5.50%.