Crypto markets crashed. One analyst says the macroeconomic environment is to blame. But another is hoping for a price hike in the second half of 2024.
The bloodshed in the markets is taking crypto with it.
In the past 24 hours, global stocks have fallen, volatility has risen and investors are fleeing to havens like bonds.
Ethereum fell 23% to around $2,250, while Bitcoin crashed 16% to around $51,000.
It fell below $50,000 for the first time since February before recovering.
The free fall in prices caused the total value of the crypto market to fall by approximately 16% to less than $1.9 trillion. CoinGecko.
Experts Say Why Crypto Markets Are Down and When The Bleeding Will Stop
World upheaval
Crypto isn't the only market in flux, analysts say.
The broader macroeconomic environment in the US, the Middle East and Asia is also in turmoil.
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Friday, the US Department of Labor reported The country's unemployment rate has risen to a nearly three-year high.
This was shortly after the US Federal Reserve suggested Rate cut In September.
“The market understands this against the backdrop of weak economic data as the US slips into recession and traditional markets are now seeing big losses,” said Tom Cohen, head trader at Algoz Technologies, a crypto asset manager. News.
Hourly Bitcoin price in the last day. Data: Dephyllama
There are high political tensions in the Middle East, as well as the central bank of Japan The decision To raise interest rates to strengthen the yen.
And, on Monday, Tokyo's benchmark stock exchange saw its biggest one-day decline since the beginning.
“Economic conditions around the world, due to the election in the US, tensions in the Middle East and rising interest rates in Japan have contributed to trade uncertainty,” Cohen added.
Weekend trading also intensified the market sell-off when liquidity was low, firms were generally inactive and fiat transfers were difficult, said Ruslan Lienkha, market chief at UHodler, a crypto wallet and trading platform. News.
Not to mention August has historically been a weak month for Bitcoin and Ethereum, Cohen said.
What next?
Eugene Cheung, head of institutions at Bybit, is still bullish.
“The underlying fundamentals for Bitcoin and Ethereum are exceptionally strong,” he said News.
He highlighted Morgan Stanley's recent material on increasing institutional adoption of crypto The decision Let wealth advisors pitch bitcoin exchange-traded funds to clients.
And he said anticipated US rate cuts, rising US national debt and increased political support for crypto all point to price gains in the second half of 2024.
“Bitcoin has the potential to break out of its current range and reach the $86,000 or $105,000 targets,” Cheung said.
Crypto market movers
Bitcoin is trading at $51,048, down 16% in the last 24 hours. Ethereum is trading down 23% at $2,252.
What are we studying?
Justin Sun Denies Liquidation Rumors As Crypto Market Drops Nearly 17% – News
Ethereum Falls Below $2,300 Amid Rumors of Jump Crypto Unwinding Positions – Not bound
Why Crypto's Fairshake Super PAC Raised 20% Less Money Than People Thought – News
Ben Weiss is the Dubai correspondent News. Got a tip? Email him [email protected].
