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Langgampos.com - Coinbase (COIN) shares faced their worst week of the year, following a sharp drop in Bitcoin mining company Marathon Digital's (MARA) stock, which plunged by 20%. Additionally, a basket of crypto-related stocks tracked by Schwab hit its lowest level since February 2024.
This massive sell-off in the crypto industry reflects rising concerns over the U.S. economy's health, exacerbated by declining prices of Bitcoin, Ethereum, and other riskier assets. According to CNBC's report on Saturday (September 7, 2024), the Nasdaq, an index heavy with tech stocks, fell 5.8% over the past week, marking its worst performance since January 2022.
Historically, September has often been a challenging month for cryptocurrencies. Data from CoinGlass shows that Bitcoin typically experiences an average loss of 4.8% during this period. The Crypto Fear & Greed Index is currently in the "Extreme Fear" zone, signaling significant concern from investors.
Bitcoin has dropped to its lowest level since February, falling 4% in the past 24 hours to hover around USD 54,000. Meanwhile, Ether, the second-largest cryptocurrency, plunged 12% to around USD 2,200. The total cryptocurrency market capitalization has fallen nearly 30% from its peak in early 2024, now sitting at USD 1.9 trillion, down from USD 2.67 trillion.
Other altcoins, including Solana’s SOL, XRP, and Cardano’s ADA, also saw significant declines, with values dropping more than 8% over the past week. The crypto market is currently facing substantial challenges amid fears of slowing global economic growth and pressure from various macroeconomic factors.
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