From Investing.com

August 5, 2024 2:20:16 AM:

Bitcoin price plunged over 12%, hitting a five-month low at $51,995.0, following broader market declines amidst growing fears of a U.S. economic slowdown.

The steep losses in equity markets coincided with Bitcoin’s slide, as weak economic data raised concerns of a potential recession, leading to a risk-averse sentiment among investors.

Further contributing to Bitcoin’s decline were expectations of interest rate cuts by the Federal Reserve, with traders turning to traditional safe-haven assets amidst the market turmoil.

The cryptocurrency also faced pressure against the Japanese yen, exacerbating its recent losses amid concerns over potential government token sales and weakening trading volumes in the crypto derivatives market.

Ether, the second-largest cryptocurrency, plummeted 21.5% to $2,390.13, reaching its lowest level since December, as the broader crypto markets were hit by the risk-off sentiment prevailing in financial markets.

Read more at Investing.com: plummets to $51k as recession fears spark crypto rout By Investing.com