Cryptocurrency markets are showing signs of fatigue as major digital assets like Bitcoin and Ethereum breakdown through support levels and face bearish pressure. The global crypto market cap is at $1 trillion and will likely continue to fall as the selloff intensifies. Bitcoin price is down 4% this week, while ETH is down 5.56%, erasing all last-week gains.
Crypto Market Faces Bearish Pressure Amid Global Economic Uncertainty
While global markets took a break over the weekend, cryptocurrency prices registered substantial growth. As Monday hit, and news about the Fed preparing to raise interest rates, the White House redefining the word recessions, and general market uncertainty entered the bloodstream of investors and traders, the bearish sentiment of this week took over.
Moreover, with the NASDAQ highly volatile, it’s a signal to tech stocks that things might get shaky this week. While the NASDAQ is currently up 0.42% since opening, the high volatility concerns traders.
Earnings season is here, which should shed light on the performance of various tech giants in Q2 2022, providing further guidance to traders and the market’s direction.
The Fed preparing to raise interest rates by another 75 basis points to curb inflation is another negative factor that could cause another correction for stocks and subsequently for crypto.
Last but not least, the word Recession is trending on Twitter, with the news that the White House is redefining the word from meaning two consecutive quarters of negative GDP is “unlikely” to be an indicator of an upcoming recession. Only time will tell whether redefining the meaning of a word will change the market’s sentiment.
One has to argue that redefining the word Recession in an attempt to curb investor uncertainty is an exceptionally 2022-esque method of avoiding responsibility and influencing an outcome.
Bitcoin is currently trading at $21,981, down 3.44% in the past 24 hours and down 1.01% in the past seven days.
Ethereum is currently trading at $1,534, down 3% in the past 24 hours and up 3.79% in the past seven days.
One interesting market statistic regarding Bitcoin and Ethereum is the rising trading volume. BTC’s and ETH’s 24-hour trading volume is up 12%, signaling that the current market correction is a significant move for traders who are either looking to take advantage of currently low prices or those looking to consolidate their gains over the past week.
Regardless of short-term market fluctuations, the long-term sentiment for major digital assets like Bitcoin and Ethereum remains highly bullish.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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