{"id":35465,"date":"2024-08-05T08:12:33","date_gmt":"2024-08-05T08:12:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-tumbles-tests-49000-amid-major-crypto-selloff\/"},"modified":"2024-08-05T08:12:33","modified_gmt":"2024-08-05T08:12:33","slug":"bitcoin-tumbles-tests-49000-amid-major-crypto-selloff","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-tumbles-tests-49000-amid-major-crypto-selloff\/","title":{"rendered":"Bitcoin tumbles, tests $49,000, amid major crypto selloff"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/BTC-red-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/BTC-red-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/BTC-red-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/BTC-red-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Bitcoin briefly tests $49k before rebounding to $51k amid a $270 billion crypto market selloff.<\/li>\n<li>Concerns over the US recession and Japan\u2019s rate hike trigger market turmoil.<\/li>\n<li>FBI warns of rising crypto scams during increased market volatility.<\/li>\n<\/ul>\n<p>The cryptocurrency market has experienced a significant downturn today, shedding approximately $270 billion in value over 24 hours according to <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko data<\/a>. Leading this decline, <a href=\"https:\/\/coinjournal.net\/bitcoin\/what-is-bitcoin\/\">Bitcoin<\/a> plummeted by almost 20%, reaching $49,121, its lowest level since February at $53,091.<\/p>\n<p><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-217978\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2024\/08\/Bitcoin-price-chart-1.png\" alt=\"Bitcoin price chart\" width=\"1304\" height=\"723\"\/><\/p>\n<p>Ether also suffered a substantial drop of 21%, falling to $2,300, erasing its gains for the year. Other cryptocurrencies like Binance\u2019s BNB and Solana have also suffered significant losses.<\/p>\n<h2>Bank of Japa hikes its benchmark interest rate<\/h2>\n<p>This dramatic downturn in the crypto market coincided with a broader selloff in equities, particularly in Asia-Pacific markets, exacerbated by Japan\u2019s Nikkei 225 falling by as much as 7%.<\/p>\n<p>The Bank of Japan\u2019s decision to hike its benchmark interest rate to the highest level in 16 years triggered this selloff, sending shockwaves through financial markets.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The sharp rise in the JPY\/USD is causing a massive unwind of Yen carry trade positions and contributing to the sharp decline in US stocks. For those who do not understand how this works, a brief explanation<\/p>\n<p>1) Many traders were borrowing Jap Yen (JPY) at low interest rates,\u2026 <a href=\"https:\/\/t.co\/sfi0Hva56M\">pic.twitter.com\/sfi0Hva56M<\/a><\/p>\n<p>\u2014 Adam Khoo (@adamkhootrader) <a href=\"https:\/\/twitter.com\/adamkhootrader\/status\/1820314551956742240?ref_src=twsrc%5Etfw\">August 5, 2024<\/a><\/p>\n<\/blockquote>\n<p>The US Nasdaq also slid into correction territory, marking its worst three-week stretch since September 2022, further contributing to the decline in risky assets, including cryptocurrencies.<\/p>\n<p>The market\u2019s reaction was influenced by Japan\u2019s monetary tightening and the US Federal Reserve\u2019s recent actions.<\/p>\n<p>Although the Fed opted to hold its benchmark rate steady, it did not indicate a rate cut in September, which many market experts had anticipated.<\/p>\n<p>This uncertainty added to the market\u2019s anxiety, causing traders to price in a 100% chance of lower US base rates in September.<\/p>\n<h2>Concerns of a potential US recession<\/h2>\n<p>The selloff reflects growing concerns about a potential US recession, triggered by softer economic data and rising geopolitical tensions.<\/p>\n<p>Tony Sycamore, a market analyst at IG, highlighted that Bitcoin and other cryptocurrencies are risk assets and are highly susceptible to market volatility. He noted that Bitcoin is currently testing crucial support levels and must hold the $53,000 mark to prevent further declines.<\/p>\n<p>However, at press time Bitcoin was trading at $51,657, well below this support level, despite making a comeback from around $49k.<\/p>\n<h2>FBI issues warning<\/h2>\n<p>The cryptocurrency market\u2019s volatility has also heightened security concerns. The FBI has issued a warning about scammers exploiting the market crash to steal users\u2019 funds.<\/p>\n<p>The FBI advised users to be cautious of unsolicited messages or calls indicating account problems and urged them to verify any issues through official channels. The agency\u2019s warning comes amid a significant increase in crypto-related fraud and hacking incidents.<\/p>\n<p>In the first half of 2024, hackers stole nearly $1.4 billion worth of crypto, more than double the amount stolen in the same period in 2023.<\/p>\n<p>This increase is attributed to the rising value of various tokens, including Bitcoin, Ethereum, and Solana. Ari Redbord, global head of policy at TRM Labs, noted that while the security of the cryptocurrency ecosystem has not fundamentally changed, the higher value of tokens has made them more attractive targets for criminals.<\/p>\n<p>As Bitcoin and other cryptocurrencies navigate these turbulent times, investors and users should remain vigilant about market conditions and potential security threats.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/bitcoin-tumbles-tests-49000-amid-major-crypto-selloff\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Bitcoin briefly tests $49k before rebounding to $51k amid a $270 billion crypto market selloff. Concerns over the US recession and Japan\u2019s rate hike trigger market turmoil. FBI warns of rising crypto scams during increased market volatility. The cryptocurrency market has [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":35466,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/35465"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=35465"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/35465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/35466"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=35465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=35465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=35465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}