On August 5, Bitcoin experienced a significant crash, dropping as low as $49,221, and wiping out over $600 million in leveraged long positions. This sharp decline followed a 10% drop from $58,350 within a couple of hours. However, Bitcoin has shown some resilience, recovering to trade around $56,000 on August 6​​​​​​.The broader crypto market also felt the impact, with Ethereum dropping 18% to a low of $2,118 before recovering slightly to $2,358. The downturn in crypto prices coincided with a severe sell-off in the Japanese stock market, where the Nikkei 225 fell 7.1% due to interest rate hikes by Japan’s central bank​​​​.Market analysts suggest that the current market conditions, including weak jobs data in the US and slowed growth in tech stocks, have contributed to the sell-off. Despite the volatility, some analysts maintain a positive long-term outlook for cryptocurrencies, expecting potential Federal Reserve rate cuts to positively impact the market​​​​.