After a spectacular bull run this week, it’s as if all good things must end as Bitcoin and Ethereum prices have retreated by over 6% in the past 24 hours. The global cryptocurrency market is again dangerously close to falling below the $1 trillion market cap, with a current valuation of $1.02 trillion, down 4.76% in the past 24 hours.
Bitcoin Price Falters Amid Tesla Q2 Earnings Report, Uncertainty Hits Markets
One reason for the abrupt market reversal today is Tesla’s Q2 Earnings report, which revealed the company sold over 75% of its Bitcoin holdings, worth over $300 million.
After investing over $1 billion into cryptocurrency last year and claiming that the company sees long-term potential for Bitcoin, their sentiment regarding cryptocurrency markets has changed since the seven-month-long bear market has devalued their portfolio.
While Tesla met their expected revenue of $16.9 billion for Q2, its stock only showed a slight increase of under 1% this Thursday.
With the current state of global markets, companies aren’t likely to be rewarded for merely meeting investor expectations regarding last quarter’s earnings. In addition, companies that manage to exceed revenue expectations are unlikely to see a significant surge in their stocks with rising inflation and increasing uncertainty for the stock market.
Moreover, with the Fed planning to raise interest rates by another 75 basis points in a few weeks, most traders are waiting on the sidelines for a market correction once the interest rates increase.
Last but not least, the real estate market is also showing a significant cooldown, with most homes staying on the market for over 30 days. More and more properties are seeing their prices cut in an increasingly desperate effort to find an offer.
Ethereum Price Struggles to Hold Above $1,500 Amid the Conclusion of EthCC
Ethereum is trading at the $1,480 range and consistently dropping every hour, struggling to hold current support as trading volume decreases.
The hype regarding the “merge trade” where investors rushed to buy the cryptocurrency during the brief bull market and news regarding an upcoming network switch from proof-of-work to proof-of-stake in September is dying down, causing a correction for ETH.
It’s surprising to see Ethereum’s price falter this much, as Vitalik Buterin, ETH’s founder, took the stage today at EthCC and talked in detail about the network merge. Vitalik mentioned how Ethereum could handle up to 100k transactions per second, a substantial upgrade from the network’s current max TPS of 108 and average TPS of 54.
The good news is that the long-term sentiment for crypto markets remains bullish, and there are plenty of ways to make money with crypto and dApps besides buying a digital asset and hoping for its price to continue increasing. Whether participating in play-to-earn or move-to-earn projects, providing liquidity and passively yield farming or utilizing a lending protocol, the possibilities are endless.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Disclosure: This is not trading or investment advice. Always do your research before buying any digital currency or investing in any project.
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