Bitcoin, Ethereum Crash as Crypto Loses $500 Billion

The cryptocurrency market witnessed a brutal three-day sell-off, the worst in nearly a year, wiping out over $510 billion from its total market capitalization since August 2nd. This downturn coincides with weak US jobs data and renewed recession anxieties.

Stock Market Slump Triggers Crypto Bloodbath

The crypto market mirrored the performance of traditional equities, with the S&P 500 experiencing a 4.4% decline in the same timeframe. Disappointing Q2 earnings reports from tech giants like Microsoft and Intel, coupled with anticipation of rate cuts in September, contributed to the market turmoil.

Bitcoin, Ethereum Plummet, Solana Takes Biggest Hit

Bitcoin (BTC) and Ethereum (ETH) suffered significant losses, dropping 10% and 18% respectively within a short timeframe. Over the past week, BTC and ETH have plunged 20% and 28%, respectively. Among the top 10 cryptocurrencies, Solana (SOL) endured the steepest decline, falling 30.6% since July 30th.

Fear Grips the Market as Jump Crypto Sells Off

Market sentiment turned sour as Jump Crypto, a major trading firm, offloaded hundreds of millions in crypto assets in recent days, according to Arkham Intelligence. This selling spree is believed to have exacerbated the downward trend.

Crypto Fear & Greed Index Reflects Widespread Panic

The Crypto Fear & Greed Index, a gauge of investor sentiment towards Bitcoin and cryptocurrencies, currently sits at a lowly 26, indicating “fear” within the market.

Crypto Faces Uncertain Future

The coming week will be a critical test for the crypto market. Recovery hinges on increased spot and derivatives trading activity from traditional financial institutions. Additionally, Bitcoin’s price needs to climb out of the “CME Gap” during regular trading hours, as noted by analyst Keith Alan.