$500B Crypto Crash: Largest 3-Day Market Wipeout in a Year

Written by Z, Enzo

Last updated: 2024-08-05

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$500B Crypto Crash: Largest 3-Day Market Wipeout in a Year

The crypto market has recently experienced its largest three-day sell-off in the past 12 months, losing a staggering $510 billion since August 2nd. This sharp decline, triggered by weak jobs data and renewed recession fears, has been mirrored in the faltering performance of equities, with the S&P 500 dropping by 4.4% in the same timeframe. Weak employment figures, sluggish growth among prominent tech stocks, and the specter of a looming recession have all contributed to this market stumble.

Key players such as Microsoft and Intel have reported disappointing Q2 results, while market-leader NVIDIA has been impacted by expectations of interest rate cuts in September, leading to capital shifting towards smaller, underperforming companies. Notably, the last time the crypto market witnessed such a drastic three-day sell-off was in mid-August 2023. Both Bitcoin and Ether prices have tumbled significantly during this unexpected market downturn on August, reflecting the broader economic uncertainty and investor sentiment.

In just the last two hours, assets have dropped sharply by 10% and 18%, respectively, causing significant market movements.

Have BTC and ETH lost their value? Prices dropped 20% and 28% in a week.

Have BTC and ETH lost their value? Prices dropped 20% and 28% in a week.

In the past week, both Bitcoin (BTC) and Ethereum (ETH) have experienced significant downturns, with BTC dropping by 20% and ETH plummeting by 28%. Among the top 10 largest cryptocurrencies by market capitalization, Solana, a Layer-1 network, has suffered the most, declining by a staggering 30.6% since July 30. This substantial decrease has been attributed to various factors, including a wave of selling from Jump Crypto. According to Arkham Intelligence data, the trading firm has offloaded hundreds of millions of dollars in assets from their books in recent days.

As the market experiences this turbulence, the Crypto Fear and Greed Index, which gauges market sentiment towards Bitcoin and cryptocurrencies, has slipped back into the “fear” zone. At the time of publication, Alternative.me data shows a score of 26, reflecting a cautious and apprehensive market mood.

The crypto market is facing another challenging week as BTC and ETH have dropped by 20% and 28% respectively in the last seven days. The losses, primarily incurred over the weekend, are now looking for support from an increase in spot and derivatives trading activity among traditional financial players. Keith Alan, co-founder of trading resource Material Indicators, noted in his recent post on August 4th that “Bitcoin has entered the CME Gap, yet technically, it can only be filled during regular trading hours of traditional financial markets.” This situation underscores the volatile nature of the cryptocurrency market and the need for cautious approaches from investors.

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