The cryptocurrency market faced a sharp decline on August 1, 2023, leading to a wave of sell-offs and a decrease in overall capitalization.
Sharp Price Decline in Cryptocurrencies
On August 1, according to CoinMarketCap, Bitcoin (BTC) fell by over 2% to $115,957, while Ethereum (ETH) saw a 3.6% decline to $3,717. Overall market value dropped 2.4% to $3.78 trillion.
Altcoin Losses
Altcoins faced pressure, with Solana (SOL) down 4.8%, Cardano (ADA) decreased by 4.89%, Dogecoin (DOGE) fell by 5.87%, and XRP lost around 3.7%. The Altcoin Season Index declined to 35, indicating a capital shift towards Bitcoin.
Impact of Macroeconomic Factors
The U.S. Federal Reserve kept interest rates unchanged but highlighted risks of economic slowdown. President Trump’s tariff policy, implemented on the same day, exacerbated the risks, prompting investors to close their positions.
The sharp decline in the cryptocurrency market on August 1, 2023, illustrates the vulnerability of digital assets to macroeconomic changes and uncertainty.
