Bitcoin Rallies Back to $60K Despite Soft Economic Data & More
Takeaways
Bitcoin Drops Below the $50,000, then Pushes Back to $60,000 Amid Economic and Geopolitical Concerns
Bitcoin saw its fourth consecutive day of decline during Asian trading on Monday, plummeting under $50,000 before recovering to around $60,000 at the midpoint of the week. The cryptocurrency's downturn is attributed to increasing geopolitical tensions in the Middle East and growing concerns about the global economy, both of which have shaken investor confidence. Many are also concerned the Federal Reserve has not been fast enough in responding to signs of a weakening US economy.
Gemini data indicates that bitcoin hit a low of $49,540 before slightly rebounding. Meanwhile, ether fell to almost $2,000, its weakest point since early January this year. This sell-off resulted in more than $1 billion worth of liquidations in the crypto futures market, with ether accounting for more than $350 million.
The sharp decline in cryptocurrency values was part of a broader market downturn fueled by fears of a global recession, turmoil in Japan’s market, and heightened tensions in the Middle East. The start of the week was not positive for global markets. Japan's Nikkei 225 Index tumbled by 12.4%, the Stoxx Europe 600 Index decreased by 2.8%, and S&P 500 micro futures lost 2.9%. The NASDAQ also tumbled by almost 2.5%. This panic selling reflects investor anxieties about potential economic instability and geopolitical unrest.
🏖️ Topic of the Week: Solana (SOL): Scaling Crypto to the Masses
➡️ Read more here
- Bitcoin's value dropped below $50,000 early this week, marking its lowest point since mid-February: But prices quickly bounced back, briefly pushing near $60,000 on Thursday, as major indices regained their footing despite fears of a US recession.
- Amid global market turbulence, US spot Bitcoin ETFs saw $168.4 million in net outflows on Monday: Grayscale’s GBTC led the withdrawals, while macroeconomic issues and crypto-specific factors intensified the market selloff.
- Crypto coalition asks for clarity on digital assets: A group of more than 50 crypto asset firms, dubbed The Crypto Market Integrity Coalition, wrote a letter to President Joe Biden and Vice President Kamala Harris asking the White House for more regulatory clarity around digital assets.
- New Ethereum wallet addresses have fallen to their lowest level this year amid the launch of spot ether ETFs: Solana, however, saw an uptick in new addresses due to its growing DEX ecosystem and interest in memecoins.
- Ripple is advancing its stablecoin strategy with the upcoming launch of Ripple USD (RLUSD): Set to debut on XRP Ledger and Ethereum, RLUSD will reportedly help advance the company’s focus on cross-border transaction innovation.
Bitcoin Drops Below the $50,000, then Pushes Back to $60,000 Amid Economic and Geopolitical Concerns
Bitcoin saw its fourth consecutive day of decline during Asian trading on Monday, plummeting under $50,000 before recovering to around $60,000 at the midpoint of the week. The cryptocurrency's downturn is attributed to increasing geopolitical tensions in the Middle East and growing concerns about the global economy, both of which have shaken investor confidence. Many are also concerned the Federal Reserve has not been fast enough in responding to signs of a weakening US economy.
Gemini data indicates that bitcoin hit a low of $49,540 before slightly rebounding. Meanwhile, ether fell to almost $2,000, its weakest point since early January this year. This sell-off resulted in more than $1 billion worth of liquidations in the crypto futures market, with ether accounting for more than $350 million.
The sharp decline in cryptocurrency values was part of a broader market downturn fueled by fears of a global recession, turmoil in Japan’s market, and heightened tensions in the Middle East. The start of the week was not positive for global markets. Japan's Nikkei 225 Index tumbled by 12.4%, the Stoxx Europe 600 Index decreased by 2.8%, and S&P 500 micro futures lost 2.9%. The NASDAQ also tumbled by almost 2.5%. This panic selling reflects investor anxieties about potential economic instability and geopolitical unrest.
🏖️ Topic of the Week: Solana (SOL): Scaling Crypto to the Masses
➡️ Read more here
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