Crypto prices are in free fall at a level not seen since 2022, when the collapse of major companies like FTX and Terraform Labs put the entire industry in peril. This time around, as leading digital assets like Bitcoin and Ethereum have fallen as much as 25% in just a day, the reasons for the plunge are more complicated.
While blockchain acolytes have long argued that cryptocurrencies offer a hedge to traditional financial assets, the drop in prices has mirrored a broader selloff across the stock market triggered by a disappointing jobs report and slow action by the Federal Reserve. With Bitcoin hovering around $50,000—a price it hasn't hit since February, after spending most of July above $65,000—the turmoil could just be getting started.
