Krutika Adani
Bitcoin fell below $50k, and Ethereum crashed to $2.1k on 5 Aug 2024. Memecoins were also hit badly, with some of them losing up to 50% in a week.
The unexpected fall resulted in the crypto market cap shrinking to $1.75 trillion, down from $2.5 trillion a few days ago.
Geopolitical tensions between Iran and Israel seem to have caused the fall. A 0.25% increase in Japanese central bank interest rates also added to the selloff.
The crypto fear and greed index fell to an extreme low of 17 from a high of 67 a week earlier.
If the geopolitical tensions subside, we can expect a quick market recovery, but a full recovery could be slower and take a while.