$500B Plunge: Largest 3-Day Wipeout for Crypto in a Year 💔
The crypto market has just experienced its largest three-day sell-off in 12 months, triggered by weak jobs data and renewed recession fears.
Since August 2, the market has briefly lost up to $510 billion, marking a significant decline. This sharp sell-off coincided with a downturn in equities, with the S&P 500 dropping as much as 4.4% over the same period.
The sell-off has been driven by disappointing employment data, slowed growth in major tech stocks, and heightened recession concerns. Major companies like Microsoft and Intel reported lower-than-expected Q2 results, while market leader NVIDIA faced expectations of upcoming rate cuts in September, prompting capital to shift towards smaller, underperforming companies.
The last comparable crypto market drop occurred in mid-August 2023.
Bitcoin (BTC) and Ether (ETH) have also seen drastic declines amid the market sell-off on August 5, plunging 10% and 18% respectively in just two hours. As of publication, BTC and ETH are down 20% and 28% over the past week.
Solana (SOL) has been the hardest-hit cryptocurrency among the top 10 by market cap, falling 30.6% since July 30.
Market analysts point to substantial asset sales by Jump Crypto as a contributing factor, with the trading firm offloading hundreds of millions of dollars in assets in recent days, according to Arkham Intelligence data.
The Crypto Fear and Greed Index, which gauges market sentiment towards Bitcoin and crypto, has returned to “fear,” displaying a score of 26 at the time of publication, as reported by Alternative.me.
Looking ahead, the crypto market faces a challenging week, with recovery efforts relying on increased spot and derivatives activity from traditional financial institutions.
“Bitcoin has entered the CME Gap, but it can only be filled during TradFi trading hours,” Keith Alan, co-founder of trading resource Material Indicators, noted in a recent post on X (formerly Twitter) on August 4.
