Key Points
- Japan’s Nikkei and Topix index have seen a 20% drop from their July highs, causing concern in the broader cryptocurrency market.
- The cryptocurrency market cap has fallen by 18% in the last 24 hours, losing over $400 billion.
The Asian trading hours recently experienced a significant sell-off, with Japan’s Nikkei and Topix index falling by over 20% from their July highs. This has led to unease in the wider cryptocurrency market.
The Nikkei index saw a dramatic 13% drop today due to fears over a US recession. This has caused ripples of worry across the broader cryptocurrency market.
Cryptocurrency Market Cap Takes a Hit
At the time of reporting, the wider cryptocurrency market cap has decreased by 18% in the last 24 hours, resulting in a loss of more than $400 billion. The price of Bitcoin has fallen by over 15%, taking it below $52,000. This extends Bitcoin’s weekly losses to over 25%.
According to data from CoinGlass, the crypto market liquidations have surpassed $1 billion in the last 24 hours. Of these liquidations, $900 million has been in long liquidations while $159 million is in short liquidations.
Market Analysts Predict Bigger Correction
On-chain data provider Santiment suggests that there’s not much enthusiasm among investors for the Bitcoin dips at present. Some market analysts predict an even larger correction once the US market begins trading on Monday.
Prominent Bitcoin critic Peter Schiff also forecasts a significant drop in the Bitcoin ETF market on Monday. He anticipates a gap down of nearly 15-30% as the US market resumes trading.
In contrast, billionaire investor Robert Kiyosaki advises buying more gold, silver, and Bitcoin.
US Futures Down, Bitcoin Investors on Alert
US futures have significantly dropped on Sunday, August 4, due to the increasing geopolitical tensions between Iran and Israel. This, coupled with deteriorating economic conditions, has left investors on edge.
The Volatility Index (VIX) has risen to its highest levels in 18 months, with bond market volatility increasing even further. Additionally, the rise in unemployment in the US has added to the concerns.
On the last Friday, the S&P 500 experienced a 2% drop, its worst fall in nearly two years. Big Tech companies have suffered even more, with the Nasdaq 100 correcting over 10% from its peak.
