đš Crypto Downfall đ
On Sunday and early Monday, $BTC prices dipped below $50,000âan important psychological metric for investor confidence in the broader crypto market, and a more than 20% drop from the previous week. Meanwhile, other tokens like $ETH and $SOL posted a seven-day drop of over 30%. By midday Monday, crypto prices had made a modest comeback as Bitcoin traded around $53,000.
The crypto crash coincided with broader setbacks for the U.S. economy. After humming along for much of July, the stock market fell last week on the heels of new data from the U.S. Labor Department that found that hiring had slowed while the unemployment rate missed expectations, rising to its highest level in nearly three years. The Dow Jones Industry Average fell more than 600 points, with traders dismayed by the Federal Reserve's decision in July to keep its benchmark interest rate unchanged. Even with a long-anticipated cut likely coming in September, fears are growing on Wall Street that action will come too late.
According to the firm, volatility is increasing as traders seek to hedge the uncertainty, with the price of options contracts increasing and trading volume focused on large-cap assets like Bitcoin, Ethereum, and Solana.
