Crypto Black Monday: Global Stock Market Plummets, Bitcoin Price Falls Below $50,000
In a crash that traders are referring to as “Crypto Black Monday”, a global stock market rout has sent the price of major cryptocurrencies careening lower, with the Bitcoin (BTC) price at one point dropping below $50,000 for the first time in February.
The Bitcoin price had last rebounded to above $54,000, down roughly 10% in the past 24 hours per CoinMarketCap.
But most other major cryptos were nursing losses in the region of 20% in the past 24 hours.
Indeed, Ethereum (ETH) was down 20% to the $2,300s. No surprise then that the term “crypto black Monday” is trending on X.
#Bitcoin just sank below $58K. If it takes out it's July low by tomorrow's U.S. #StockMarket open, #BitcoinETFs will gap down by more than 15%, 30% below their Jan. highs. A loss of that magnitude may finally trigger mass ETF liquidations. If so, brace for a #Crypto black Monday.
— Peter Schiff (@PeterSchiff) August 4, 2024
Stock indices around the world also dropped sharply.
The Nasdaq 100 futures tumbled over 3.5%, but were at one stage down 6.5%, per TradingView.
Japan’s Nikkei 225, meanwhile, was last down 6%, but at one stage had fallen 13%. So, what has caused crypto black monday?
Well, two major catalysts have combined to batter sentiment.
Firstly, traders are panicking about a potential US recession/global slowdown in wake of last week’s concerning US jobs data.
They are also concerned that the Fed might be “behind the curve” and cut interest rates too slowly to support growth.
The Federal Reserve was too slow to raise rates. Now it is too slow to lower them.
— Bill Ackman (@BillAckman) August 5, 2024
The other major bearish catalyst in the market is the unwinding of the famous pro-risk Japanese yen carry trade.
If you are still wondering why the hell the
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