The cryptocurrency market loses $1T.
Bitcoin, Ethereum and other major assets tumbled Tuesday in what is expected to be a volatile week for global crypto and financial markets. According to data from CoinGecko, Bitcoin is trading around $21,000, after suffering a 4.9% decline while Ethereum fell to $1,390 after suffering a 9.1% decline.
Many other Ethereum-linked assets, including Lido’s LDO token, Convex Finance’s CVX, Uniswap’s UNI and Polygon’s MATIC, have posted double-digit losses in the past 24 hours, throwing the doubt about the strength of the so-called “merge tradeahead of the long-awaited Ethereum Proof-of-Stake upgrade.
Markets prepare for volatility
This decline comes at the approach of a few busy days for the financial markets. Alphabet and Microsoft are due to report their second-quarter results, while Meta will report earnings for the same period tomorrow. On Thursday, both Amazon and Apple will release their results. Traders will be watching the results of big tech companies closely over the next few days as they could help give an indication of the state of the economy. Tesla revealed last week that it reduced its bitcoin position by 75% in the second quarter, most likely selling its holdings at a loss.
Markets are gearing up for the Federal Open Market Committee meeting today. Fed Chairman Jerome Powell is expected to announce a 75 basis point interest rate hike as the central bank seeks to rein in soaring inflation rates in the United States; the Fed’s recent rate hikes have led to market meltdowns as investors seek to ward off risk. The Bureau of Economic Analysis’ US GDP figures for the second quarter of the year are also due out on Thursday, potentially reinforcing signs of an impending recession if the US economy shows further contraction.
After yesterday’s fall, the total value of the cryptocurrency market once again slipped below $1 trillion. The global cryptocurrency market capitalization is around $996 billion, down nearly 70% from its peak in November 2021.
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