Bitcoin’s share in the crypto market reached a new record of 58% amid a sudden fall in major altcoins and the stock market crash.
In the early trading hours on August 5, Bitcoin dominance reached 58.1%, however, a sudden market crash and sell-off pressure made Bitcoin lose 10% in two hours of trading and ETH fell 18% in the same timeframe.
While speaking to a crypto firm, Tony Sycamore, an IG market analyst, says that Cryptocurrency and Bitcoin are hazardous assets, as this market trend is a clear example.
Altcoins and the stock market crash
The market is experiencing a shake-up due to fears of a recession and a severe economic downturn, along with concerns about the conflict between Israel and Hezbollah, who exchanged rockets over the weekend. Additionally, the US is increasing its military presence in the area, adding to the tension.
Sycamore explained that the impact of the market crash is broader in the Asian market, including an 8% drop in Japan’s Nikkei 225 and trading halts in South Korea, which is part of a larger global trend of investors avoiding risky investments.
He further stated that if any market traded well this year, they would be tech trade, Japan trade, and Bitcoin. While talking about ETH, he thinks that the price of the token is trembling due to the large amount of token creation on its blockchain.
Besides Bitcoin and Ethereum, major altcoins bleed badly, SOL dropped 36% in price, BNB fell by 25.7%, and XRP lost 23.14% in its price, as per coinmarketcap data.
Sycamore noted that the Manufacturing Purchasing Managers Index and Institute of Supply Management’s repost can specify where the market is heading now.
“I think that ISM number has the potential to either calm or inflame concern because if all of a sudden we get cracking in the labor market, then it would show us the Fed has missed their window, which would probably lead to further downside for all risk assets, including crypto.”
Sycamore added that if the ISM numbers show growth, it could mean the market is stronger than expected, helping to support the prices of risky investments.
In the last three days of trade, crypto has seen the largest sell-off of $500 billion, which is the largest since August 2023.
