Crypto Market Experiences Largest Three-Day Sell-Off in a Year, Losing $510B

Crypto Market Experiences Biggest Three-Day Sell in a Year, Loses $510 Billion

The cryptocurrency market has suffered its most significant three-day sell-off in nearly a year, losing a staggering $510 billion since Aug. 2. The sell-off was driven by a combination of negative factors, including weak employment data, slowing growth in big tech stocks and renewed recession fears.

The sharp decline mirrors a broader stumble in equity markets, where the S&P 500 has fallen as much as 4.4% over the same period. Major companies such as Microsoft and Intel reported weaker-than-expected Q2 results, while market leader NVIDIA faced headwinds from expectations of looming interest rate cuts in September.

Bitcoin and Ethereum prices have taken significant hits during this market turbulence, falling 10% and 18% respectively in just two hours on August 5. At the time of publication, Bitcoin (BTC) is down 20% and Ethereum (ETH) is down 28% in the past week. Among the top 10 cryptocurrencies by market cap, Solana has been hit the hardest, dropping 30.6% in value since July 30.

The Crypto Fear & Greed Index, which tracks market sentiment toward Bitcoin and other cryptocurrencies, has returned to “fear” territory. Much of the losses from the weekend will need to be offset by increased activity from traditional financial institutions in both spot and derivatives markets.