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<p>The crypto market has suffered a major dip with <a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/">Bitcoin</a> (BTC) recording a 16% fall. This decline has been recorded at a time when there are other economic worries and the selling of risk assets. </p> 
<p>On the 5th of August, 2024, Bitcoin’s value dropped below the $50,000 mark, which was quite alarming to investors and analysts.</p> 
<h2 class="wp-block-heading" id="h-market-technical-analysis"><strong>Market Technical analysis</strong></h2> 
<p>Technical analysis shows&nbsp;<a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/">Bitcoin</a>&nbsp;has breached the $55,000 support level, plummeting towards a new base of around $49,000. This sharp decline highlights a surge in bearish sentiment across the cryptocurrency market. The break below the support level signals a major shift in investor confidence, sparking extensive sell-offs</p> 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="490" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-1024x490.png" alt="BTC/USD 24-Hr Price Chart | Source:&nbsp;TradingView" class="wp-image-647436" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-1024x490.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-300x144.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-768x367.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-1536x735.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-150x72.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-696x333.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-1068x511.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47-1920x919.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-47.png 2000w" sizes="(max-width: 1024px) 100vw, 1024px">
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  BTC/USD 24-Hr Price Chart | Source:&nbsp;<a href="https://www.tradingview.com/x/O8qChVCS/">TradingView</a>
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</figure> 
<p>Additionally, the Bull/Bear Power (BBP) indicator is deep in the negative, showing a value of around -15,720. This metric confirms the strong bearish momentum that currently dominates market dynamics. It measures how effectively bears are pushing prices below a standard exponential moving average. This suggests that sellers are in control, potentially driving prices lower unless market sentiment shifts.</p> 
<p>Recent data has also shown that the decline is not limited to&nbsp;<a href="https://www.thecoinrepublic.com/2024/08/04/bitcoin-sv-bsv-price-couldnt-breach-50-hurdle-whats-next/">Bitcoin</a>&nbsp;alone. The entire crypto market has incurred massive losses, with over $500 billion wiped out in just three days. This has been the biggest sell-off within a year which shows that there are still weaknesses in the market structure and the investors’ confidence.</p> 
<p>Experts are paying attention to these events, as the sharp fall indicates a change in sentiment that may affect the market in the long term.</p> 
<p>Moreover,&nbsp;<a href="https://www.coinglass.com/LiquidationData">Coinglass data</a>&nbsp;shows intense liquidations contributing to the market’s volatility. In just the last 12 hours, approximately $800 million worth of positions have been liquidated, underscoring the severe anxiety in the market. Notably, $569 million worth of bullish positions have been wiped out, signaling a continuation of the market crash.</p> 
<p>Additionally, the Crypto Fear &amp; Greed Index, a measure of market sentiment toward Bitcoin and other cryptocurrencies, has&nbsp;<a href="https://alternative.me/crypto/fear-and-greed-index/#google_vignette">dipped</a>&nbsp;into the “fear” zone with a score of 26, its lowest in 23 days. This indicator suggests a bearish outlook as investor sentiment remains fragile.</p> 
<h2 class="wp-block-heading" id="h-factors-contributing-to-the-market-downturn"><strong>Factors Contributing to the Market Downturn</strong></h2> 
<p>The decline in the crypto market is also in line with the poor performances of the leading equity markets in the world. The U.S.&nbsp;<a href="https://www.thecoinrepublic.com/2024/08/03/max-keiser-microstrategy-stock-growth-potential-unlimited-how-and-why/">stock market</a>&nbsp;especially the Nasdaq has witnessed a substantial decline which usually has an impact on the cryptocurrency market</p> 
<p>In addition, some economic metrics like employment figures and manufacturing indexes have also deteriorated more than anticipated, which has raised concerns about recession. This economic instability has led to investors pulling out their money from crypto, which is considered a high-risk asset.</p> 
<p>The recent U. S. Federal Reserve decision to keep interest rates unchanged has added to the uncertainty as lower interest rates are generally good for digital assets. The Fed’s decision has therefore been considered a negative factor for the crypto market.</p> 
<h2 class="wp-block-heading" id="h-global-influence-and-future-crypto-market-outlook"><strong>Global Influence and Future Crypto Market Outlook</strong></h2> 
<p>The given example clearly shows the impact of global market trends on cryptocurrency prices. For example, when the Bank of Japan hiked the interest rates,&nbsp;Japanese&nbsp;investors repatriated their funds, which caused selling pressure on cryptocurrencies.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> WHY THE CRYPTO MARKET IS COLLAPSING: THE JAPANESE YEN VS USD CHART! <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4a5.png" alt="💥" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br>For 30 years, Japan’s 0% interest rates led investors to borrow Yen cheaply and invest globally in assets like T-Bills and the Nasdaq. This week, the Bank of Japan’s unprecedented 0.25% rate hike is… <a href="https://t.co/GimDXChmNh">pic.twitter.com/GimDXChmNh</a></p>— Good Morning Crypto (@AbsGMCrypto) <a href="https://twitter.com/AbsGMCrypto/status/1820273596385656926?ref_src=twsrc%5Etfw">August 5, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
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<p>As the market heads into another week, the outlook remains cautious. The ongoing liquidations and the bearish trend suggest that the market may not have reached its bottom yet. However, market analysts also note that such downturns are often followed by corrective rallies.</p> 
<p>This recent downturn serves as a reminder of the volatility and risks associated with cryptocurrency investments.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/08/05/crypto-market-crash-will-bitcoins-sharp-decline-trigger-further-crypto-market-losses/">Crypto Market Crash: Will Bitcoin’s Sharp Decline Trigger Further Crypto Market Losses?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Crypto Market Crash: Will Bitcoin’s Sharp Decline Trigger Further Crypto Market Losses?

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