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Cryptocurrency markets fell sharply on Sunday as investors continued to sell off risky assets.
Bitcoin’s 11% drop and Ethereum’s 21% plunge over the past 24 hours have caused the overall value of cryptocurrencies to fall by around $270 billion, the report said. Coin Gecko data.
The cryptocurrency market crash coincided with a broader decline in stock markets across Asia-Pacific. Japan’s Nikkei average fell 7%, extending losses from the previous week, after the Bank of Japan said it would raise interest rates to their highest level in 16 years.
In the U.S., the Nasdaq fell 3.4% last week into correction territory, capping off the worst three-week period for the tech-heavy index since September 2022, when the market was in free fall. Amazon and NVIDIA contributed to the decline.
Last week’s drop in stocks was due in part to disappointing corporate earnings, weaker-than-expected employment data, rising unemployment and a weakening manufacturing sector. The Federal Reserve chose to keep interest rates on hold and did not commit to a rate cut in September, as many market watchers had expected. Lower interest rates tend to correlate with better performance of risk assets.
BitcoinThe price of fell to its lowest level since February. The world’s largest cryptocurrency is trading at around $54,000 and is still up about 23% this year.
The price is etherThe native token that underpins the Ethereum blockchain has fallen to around $2,300, wiping out gains this year. Binance’s BNB token has fallen more than 15%. Solana It is trading down 10%.
Investors are also keeping an eye on new trade data from China and Taiwan due this week, as well as central bank decisions in India and Australia.
The recent cryptocurrency sell-off will have an impact on a wider investor base after the SEC approved new spot exchange-traded funds for bitcoin and ethereum this year that have seen hundreds of millions of dollars flow into the coins. On Friday, CNBC reported that Morgan Stanley will soon allow its 15,000 financial advisors to pitch a bitcoin ETF to clients, becoming the first Wall Street firm to do so.
clock: Bitcoin fluctuates amid market-wide sell-off