Cryptocurrency markets have seen their biggest three-day selloff in nearly a year, with $313 billion wiped out since August 2.
Cryptocurrency sell-offs surged amid a weak stock market, with the S&P 500 down as much as 4.4% over the same period.
The market downturn was driven by weak jobs data, slowing growth in major technology stocks and renewed fears of a recession.
Several major companies, including Microsoft and Intel, reported weaker-than-expected second-quarter results, and market leader Nvidia took a hit in September on expectations of an imminent interest rate cut, sending capital back into smaller, laggard companies.
The last time cryptocurrencies sold off this sharply was in mid-August 2023.
Solana (SOL), a layer 1 network, is the hardest hit cryptocurrency among the top 10 tokens by market cap, falling 25.7% from $184 to $137 since July 30.
Meanwhile, Bitcoin (BTC) and Ether (ETH) also plummeted, falling 14% and 17% respectively over the same period.
Some market commentators see Jump Crypto’s continued sell-off as a worsening factor, with Arkham Intelligence data showing the trading firm has shed hundreds of millions of dollars worth of assets from its books in the past few days.
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According to Alternative.me data, the Crypto Fear and Greed Index, a barometer that tracks market sentiment towards Bitcoin and cryptocurrencies, has fallen back into “fear” territory, currently sitting at 26 at press time.
Cryptocurrency markets are set to face another tough week ahead, with most of the losses incurred over the weekend likely to be covered by increased spot and derivatives activity from traditional financial institutions.
“Bitcoin has entered the CME gap, but technically it can only be filled during TradFi trading hours,” Keith Alan, co-founder of trading resource Material Indicators, wrote in a recent X post on August 4.
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