Bitcoin (BTC) experienced a sharp price drop on August 5, 2024, leading to a significant decline in many altcoins. The main reason is due to widespread risk aversion in global markets, especially when investors are concerned about the possibility of a US economic recession along with escalating geopolitical tensions in the Middle East. . This led to a decline in confidence and a wave of selling in the cryptocurrency market.

Data from CoinGecko shows that BTC fell more than 12% within 24 hours, while Ether plummeted 17%. Other factors contributing to the decline include the Bank of Japan unexpectedly raising interest rates to a 16-year high and uncertainty about the US Federal Reserve's interest rate cuts. (Fed) in September​ (Cryptonews)​​ (Cryptonews)​.

At the same time, Bitcoin ETFs also witnessed the largest capital withdrawal in the past three months on August 2, 2024, raising concerns about the possibility that the market could enter a new decline​ (Cryptonews )​.#MarketDownturn