Bitcoin and Ethereum Nosedive as Market Panic Spreads: Have Bear Sentiments Finally Prevailed?

Japan's woes spread to the U.S. The Nasdaq dropped over 5% in two days. Nasdaq futures are down 2.5% on Sunday evening.

The Fed also threw a curveball. They held rates steady but seemed iffy about a September cut. Markets had banked on that cut.

Traders aren't waiting for the Fed. They've priced in a 100% chance of lower U.S. rates in September. There's a 71% chance of a 50 basis point cut.

The 10-year Treasury yield has nosedived. It's at 3.75% Sunday evening. That's down from 4.25% a week ago.

The current yield is way below the fed funds target. The target sits at 5.25%-5.50%. Talk about a gap!

Markets are in full panic mode. The Nikkei's down another 6% early Monday. That's a 15% drop in three days. It's off 20% from its mid-July peak.

Alexey Bondarev is the Head of Content at Yellow.com, having reported on crypto for the last 10 years. He specializes in in-depth Research and Learn pieces, with a focus on analytical reporting, industry context, and the bigger forces shaping crypto, from the AI era and security technologies to fintech innovation. He believes that everything digital will imminently overcome everything analogue and is working hard to make that come true.