{"id":560648,"date":"2024-08-05T09:55:13","date_gmt":"2024-08-05T09:55:13","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=560648"},"modified":"2024-08-05T09:55:13","modified_gmt":"2024-08-05T09:55:13","slug":"bitcoin-plunges-below-52k-and-ethereum-slumps-23-amid-panic-selling-as-japan-rate-hike-spooks-investors","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/bitcoin-plunges-below-52k-and-ethereum-slumps-23-amid-panic-selling-as-japan-rate-hike-spooks-investors","title":{"rendered":"Bitcoin Plunges Below $52K And Ethereum Slumps 23% Amid Panic Selling As Japan Rate Hike Spooks Investors"},"content":{"rendered":"

Bitcoin<\/span><\/a> plummeted below $52K and Ethereum plunged more than 23% after a rate hike by the Bank of Japan spooked financial markets, triggering panic selling.<\/span><\/p>\n

Japanese stocks endured their worst day since 2008 on August 2 following the <\/span>interest rate hike<\/span><\/a>. The Nikkei 225 stock index is <\/span>down<\/span><\/a> over 12% as of 2:50 a.m. EST.<\/span><\/p>\n

\"380,000+<\/p>\n

Bitcoin Plunges As $1 Billion In Leveraged Crypto Positions Liquidated<\/span><\/h2>\n

The Bitcoin price plummeted 13% to trade at $51,809 as of 5.50 a.m. EST as more than $1 billion in leveraged positions were liquidated in the day of trading, according to <\/span>CoinGlass data<\/span><\/a>. Over $898 million in long positions was wiped out, while short positions worth over $140 million were liquidated.<\/span><\/p>\n

The total <\/span>market capitalization<\/span><\/a> of the crypto market plummeted 17% to about $1.85 trillion.<\/span><\/p>\n

Crypto Fear And Greed Index Signals “Fear” Amid Latest Crypto Crash<\/span><\/h2>\n

Crypto investor sentiment shifted to bearish as well over the last couple of days. Since last week, the <\/span>Crypto Fear and Greed Index<\/span><\/a> has dropped from a “Greed” score of 74 to signal “Fear” in the market with its current reading of 26.<\/span><\/p>\n

And there may be worse to come, with ETF (exchange-traded fund) investors expected to react negatively to the recent market decline, according to Peter Schiff.  In an Aug. 2 post on X, Schiff that BTC <\/span>is down 45% against gold since BTC set its all-time high in November 2021.<\/span><\/p>\n

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#Bitcoin<\/a> traded below $50K. It's down about 22% since Friday's U.S. stock market close, and It's now down 45% priced in #gold<\/a> since its Nov. 2021 high almost three years ago. It's back above $50K now, but wait until the stock market opens and ETF holders can finally sell too.<\/p>\n

— Peter Schiff (@PeterSchiff) August 5, 2024<\/a><\/p><\/blockquote>\n