The large-scale selling wave in the cryptocurrency market caused Bitcoin and altcoin prices to fall.
Bitcoin (BTC) is trading at $270, down 4.7% in the last 24 hours, while Ethereum (ETH) is trading at $2,368, down 5.8%.
The decline was attributed to the US Department of Justice's investigation into Nvidia and the sell-off in US stocks, with analysts evaluating the latest decline.
Peter Chung, Head of Research at Presto Research, said that the decline, which also spread to Bitcoin and altcoins, was mainly due to the weak August ISM data released overnight, which led to a sell-off in all TradFi risk assets.
Speaking to The Block, Chung stated that Btcoin's 4% drop in the last day occurred in two steps.
“The initial decline was driven by US data. This decline was actually quite modest compared to the 17% decline during the August 5 market crash that was driven by the same fears.
In my opinion, the second step decline came as Asian-based investors reacted uncontrollably to weak Asian stock markets this morning. Japan's TOPIX and South Korea's KOSPI indexes fell significantly this morning.
But overall, a 4% drop is still moderate for BTC, given the magnitude of the decline in TradFi markets.”
*This is not investment advice.