The post What’s Driving Bitcoin & Altcoins Crash? 5 Key Insights appeared on BitcoinEthereumNews.com.

The selling pressure on the crypto market continues accelerating in the first week of August. Initiated with the Bitcoin price reversal from $70000, the bears took advantage of the market’s fear, uncertainty, and doubt (FUD) around geopolitical tension in the Middle East and fears of recession. This renewed selling pressure triggered a fresh correction in sentiment in most major altcoins as Ethereum dipped below $3000 on Friday. Here are five reasons behind today’s crypto market crash. 1. Disappointing Nonfarm Payrolls Data The latest U.S. nonfarm payrolls report revealed that only 114,000 jobs were added in July, significantly below the anticipated figures. Additionally, the unemployment rate unexpectedly rose to 4.3%, marking its fourth consecutive increase. According to BlackRock’s Jeffrey Rosenberg, “The reaction here is probably the right reaction. We’ve had a string of disappointing data, and that’s pushing more concerns about the economic outlook.” The weaker-than-expected jobs data has stoked fears of a slowdown, impacting risk assets, including cryptocurrencies. 2. Rising Recession Fears The weak jobs report has intensified recession fears, with economist Peter Schiff amplifying these concerns. Schiff argued, “Rate cuts will fail to revive the economy or employment, but they’ll heat up already hot inflation. This isn’t your father’s stagflation. It’s much worse!” His comments highlight fears that the Federal Reserve’s potential rate cuts might not prevent a recession and could instead accelerate inflation. These concerns fuel broader market volatility and catalyzed today’s crypto market crash. Furthermore, Schiff criticized the poor performance of Spot Ethereum ETFs as these investment products continued outflows. He also predicted that at this rate, the ETH price would be back at the $2,000 level. Currently, ETH is barely holding above $3,000. Also Read: Bitcoin & Crypto Cheques To Clear $35T US Debt, Donald Trump Says 3. Bitcoin Long Liquidations The cryptocurrency market has seen a…

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Filed under: News - @ August 4, 2024 10:02 am