Cryptocurrency prices fell significantly during trading yesterday, Monday, due to declines in US markets following weak economic data that showed an approach to an economic recession, which sparked interaction on social media platforms.
These cryptocurrencies, as a commodity offered for trading, are subject to the market law based on supply and demand, which led to this significant decline that prompted traders to liquidate their digital currency accounts worth $1.13 billion.
Bitcoin fell from $70,000 per coin to below $51,000 for the first time since February, while Ethereum’s decline was more severe, reaching its lowest level in 7 months at less than $2,200.
Many large companies have transferred large amounts of Ethereum to centralized exchanges, and the most affected have been small investors.
Among the most prominent reasons for the decline are fears of an economic recession in America, as well as a slowdown in employment and an unexpected rise in the unemployment rate to 4.3%, the highest since October 2021.
The Shabakat program (8/6/2024) monitored some of the tweeters’ interaction with this decline, including what Monem wrote: “Very normal, this market is not for the faint of heart and not for those in a hurry for wealth. In the end, the most patient wins.”
Taha Salimi wrote: “The story is easy, the market makers are not helped by everyone staying in the market. It is necessary to liquidate as many investors as possible before the bull run begins. The solution is if you have cash, reinforce every drop, and if you don’t have it, close the application and forget about the market for months.”
Anas believes that “the issue is that whales are selling now, when the market falls they will buy in large quantities, but the ones who will suffer, of course, are the small sardines.”
Ali Al-Darwish tweeted, “Fear of the collapse of the US market and demands for the Federal Reserve to lower interest rates indicate that a recession is coming and with force.”
Overall, the market cap of cryptocurrencies fell 13.05% on Monday to $1.86 trillion.
