- The cryptocurrency market experienced a sharp decline on Sunday, losing approximately $270 billion in value within a 24-hour period.
- Both Bitcoin and Ether faced significant drops as investors moved away from high-risk assets.
- This downturn follows the Nasdaq's worst three-week performance in two years.
The cryptocurrency market took a nosedive on Sunday, with investors continuing to offload risky assets. Bitcoin fell by 11% over the past 24 hours, while Ether plummeted by 21%, leading to an overall drop of around $270 billion in cryptocurrency value, according to CoinGecko data.
This crypto selloff came amid a broader downturn in global equities. Japan’s Nikkei 225 dropped by up to 7%, extending losses from the previous week following the Bank of Japan's announcement of an interest rate hike to its highest level in 16 years.
In the U.S., the Nasdaq fell by 3.4% last week, entering correction territory and marking its worst three-week stretch since September 2022. The decline was exacerbated by poor earnings reports and a weaker-than-expected jobs report, coupled with rising unemployment and a slowing manufacturing sector. The Federal Reserve’s decision to maintain its benchmark rate, without signaling a rate cut, also contributed to market unease.
Looking ahead, investors are watching for new trade data from China and Taiwan, as well as central bank decisions from India and Australia. The recent crypto downturn is likely to impact a broader range of investors, especially after the SEC approved new spot exchange-traded funds (ETFs) for Bitcoin and Ether this year. These ETFs have attracted significant investment, with Morgan Stanley recently preparing to allow its 15,000 financial advisors to offer Bitcoin ETFs to clients, marking a significant development on Wall Street.
**WATCH:** Bitcoin experiences volatility amid widespread market selloff.