Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Crypto Market Dips Below $1T As Recession Fears Loom

By Crypto BriefingCryptocurrencyJul 27, 2022 02:13AM ET
www.investing.com/analysis/crypto-market-dips-below-1t-as-recession-fears-loom-200627684
Crypto Market Dips Below $1T As Recession Fears Loom
By Crypto Briefing   |  Jul 27, 2022 02:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BTC/USD
+5.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+4.87%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Bitcoin tumbled to $21,000 Tuesday, dragging the rest of the cryptocurrency market down.

Key Takeaways

  • The cryptocurrency market suffered a correction Tuesday, with the Ethereum ecosystem taking a big hit.
  • The dip comes as markets brace for major earnings reports, the next Federal Reserve meeting, and the Q2 GDP print over the next few days.
  • After today's dip, the value of the cryptocurrency market has fallen below $1 trillion.

Coinbase (NASDAQ:COIN) and MicroStrategy stocks have also taken a battering today as crypto and global financial markets await the next Federal Reserve meeting and upcoming Q2 GDP print.

Crypto Market Slides Below $1T

Another selloff has hit the crypto market.

Bitcoin, Ethereum, and other major assets tumbled Tuesday during what’s expected to be a volatile week for crypto and global financial markets. According to data from CoinGecko, Bitcoin is trading at around $21,000 at press time after taking a 4.9% hit, while Ethereum has plummeted to $1,390 after suffering a 9.1% downturn.

Many other Ethereum-adjacent assets, including Lido’s LDO token, Convex Finance’s CVX, Uniswap’s UNI, and Polygon’s MATIC, have posted double-digit losses in the last 24 hours, casting doubt on the strength of the so-called “Merge trade” in the lead-up to Ethereum’s long-awaited Proof-of-Stake upgrade.

Crypto-centric stocks were also hit today as U.S. markets opened. Coinbase’s COIN is down 15.3% on the day, trading at about $57 following the news that the SEC is investigating the exchange on allegations of listing unregistered securities. At the same time, MicroStrategy’s MSTR, which has closely correlated with Bitcoin since the firm pushed to acquire billions of dollars worth of the top crypto, has slid 10.2% to roughly $239.

Markets Brace for Volatility

The downturn comes ahead of a busy few days for financial markets. Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) are due to report on their second-quarter earnings later this evening, while Meta will disclose its takings for the same period tomorrow.

On Thursday, Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) will both reveal their earnings. Traders will be watching the Big Tech company calls closely over the next few days as they could help indicate the state of the economy. Tesla (NASDAQ:TSLA) revealed last week that it had reduced its Bitcoin position by 75% in the second quarter, most likely selling its holdings at a loss (Tesla spent $1.5 billion on Bitcoin at an average cost basis of around $32,000 per coin in early 2021, but Bitcoin tumbled as low as $18,000 in Q2).

Besides the various earnings calls this week, markets are bracing for Wednesday’s Federal Open Market Committee. Fed Chair Jerome Powell is expected to announce a 75 basis point interest rate hike as the central bank aims to curb soaring inflation rates in the U.S.; the Fed’s recent rate hikes have led to market selloffs as investors look to move risk-off. The Bureau of Economic Analysis’ GDP print for the second quarter of the year is also slated to drop this Thursday, potentially reinforcing the signs of a looming recession if the economy shows another retraction (the economy shrank by 1.6% in Q1).

The White House shared an interview transcript with Treasury Secretary Janet Yellen commenting on the state of the U.S. economy Sunday, dismissing claims that the U.S. economy could be in a recession. While recessions have historically been defined by two quarters of economic retraction, Yellen affirmed that the technical definition of a recession accounts for “a broad range of data” compiled by the National Bureau of Economic Research.

After today’s bleed, the total value of the cryptocurrency market has once again slid below $1 trillion. The global crypto market capitalization is around $996 billion, down almost 70% from its November 2021 peak.

Original Post

Crypto Market Dips Below $1T As Recession Fears Loom
 

Related Articles

EWM Interactive
Ethereum To Surge To Over $2,000 By EWM Interactive - Sep 27, 2022

2022 has been a rough year for crypto investors. The entire market lost roughly 70% from its all-time high and some digital currencies plunged even more. Bitcoin is still hovering...

Crypto Market Dips Below $1T As Recession Fears Loom

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email