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Donald Trump

Kamala Harris (kamalaharriscoin.com)

Kamala Harris (kamaharris.fun)

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/cryptocurrencies-face-significant-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cryptocurrencies Face Significant Decline</a><br></p>
<p style="text-align: justify">On August 5th, the cryptocurrency market faced a severe downturn, dubbed Black Monday, with major cryptocurrencies, including Bitcoin, experiencing steep declines. Bitcoin plunged by 19.91% over the week, briefly dropping below $50,000 to as low as $49,000. CoinMarketCap <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data revealed</a> that all top cryptocurrencies by market value, excluding Tether (USDT), faced substantial losses in the last 24 hours.</p>
<h2 id="why-are-investors-nervous">Why Are Investors Nervous?</h2>
<p style="text-align: justify">A report by Nansen pointed out that US economic growth fears were the primary driver of the market turbulence on August 5th. Investors’ diminishing expectations for economic growth led to a re-evaluation of high-risk assets.</p>
<p style="text-align: justify">This resulted in significant sell-offs in riskier assets like cryptocurrencies. Concurrently, the narrowing gap between Donald Trump and Kamala Harris in presidential election polls added another layer of political risk.</p>
<h2 id="what-impact-did-japan-s-policy-have">What Impact Did Japan’s Policy Have?</h2>
<p style="text-align: justify">The Bank of Japan’s move towards policy normalization also weighed heavily on global markets. This policy shift dampened investor sentiment, triggering a wave of selling. The combination of high volatility and recession fears further dissuaded investors from high-risk assets, fostering a more cautious approach.</p>
<p style="text-align: justify">According to Nansen, the likelihood of a recession coupled with high volatility suggests that investors should consider reducing rather than increasing their risk exposure. Taking advantage of price recoveries to decrease exposure is recommended.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Monitor <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">economic indicators</a> and adjust asset allocations accordingly.<br> – Use price recoveries as opportunities to reduce risk exposure.<br> – Avoid panic during market fluctuations.<br> – Stay informed about global economic policies and their potential impacts.</p>
<h2 id="result">Result</h2>
<p style="text-align: justify">As Bitcoin’s price plummeted, the total liquidation amount surpassed $1 billion. The Crypto Fear and Greed Index plunged from 74 to 26. Bitcoin is now trading at $55,462, while Ethereum is at $2,439, BNB at $465, <a href="https://en.bitcoinhaber.net/solanas-battle-with-200-barrier-a-look-at-market-indicators-and-investor-sentiment" data-wpel-link="internal" rel="noopener noreferrer nofollow">Solana</a> at $132, and Ripple at $0.49. Nansen’s report highlighted that US growth worries, political uncertainties, and the Bank of Japan’s policies drove investors away from risks.</p>
<p style="text-align: justify">In these turbulent times, investors are generally advised to view price recoveries as opportunities and act accordingly. Maintaining composure amid rapid market fluctuations remains a fundamental principle.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/cryptocurrencies-face-significant-decline" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cryptocurrencies Face Significant Decline</a></h5>

Cryptocurrencies Face Significant Decline

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