Business news from Ukraine

Business news from Ukraine

Panic on stock exchanges, cryptocurrencies also fall sharply

5 August , 2024  

The bitcoin exchange rate is falling sharply on Monday amid a global sell-off in risky assets.

Bitcoin fell by 10.8% to $52,827 thousand by 12:25 Kyiv time, according to CoinDesk. Over the past five sessions, the cryptocurrency has lost more than 21% of its value, although it has added almost 26% since the beginning of the year.

The Ether exchange rate fell by 15.3% to $2,330. This is a record drop since 2021.

The Japanese stock index fell by 12.4% on Monday, the fastest pace since October 1987, and futures on the US stock index Nasdaq Composite are down 4.2%.

The collapse of risky assets is caused by growing fears of a recession in the United States after weak statistics released last week. Goldman Sachs analysts now believe that the probability of a recession in the US economy in the next year is 25% instead of the previously expected 15%, and markets see a 60% chance that the Federal Reserve will hold an extraordinary meeting this week and cut its key interest rate by 25 basis points.

“The market is in a panic mode,” said Grace Chen, head of the Bitget cryptocurrency exchange.