The cryptocurrency market experienced a very scary price movement due to the onslaught of risk aversion globally.
The price of Bitcoin recorded a drop of more than 14% and this is the second record since it suffered the worst fall in 2021.
Bitcoin's 13.1% drop to $50,900 at 3pm in Malaysia since last week is the worst on record since the FTX explosion.
The decline comes as a global stock sell-off, worries about the economic outlook and questions about whether big investments into artificial intelligence will match the investments surrounding the technology.
In addition, geopolitical tensions are rising in the Middle East adding to investor anxiety.
US Bitcoin exchange-traded funds saw their biggest outflow in about three months last Friday.
Meanwhile, market participants are now increasing their bets for a US interest rate cut starting at the September meeting in support of economic expansion.
The prospect of a less restrictive monetary policy is actually something that gives the crypto market an advantage because it will reduce the cost of holders and the buying and selling activities will be more lively.
According to Coinglass data, about $790 million in the crypto market was liquidated within 24 hours.