2024-08-05 11:59:03
Investing.com – Cryptocurrencies start the week with a complicated situation, influenced by global risk aversion, after the latest data on the job market () in the US.
This Monday, the main digital currencies, such as , and , touched new lows, due to a strong liquidation of risky assets.
Bitcoin even missed the US$50,000 mark for the first time since February, recording a low of US$49,351, before recovering to around US$51,400 at 9am in Brazil.
As a result, bitcoin’s share of the total market increased to 58%, while the altcoin and stock markets faced significant declines, erasing more than 17% of the total cryptocurrency market capitalization value.
The total market capitalization, which was about US$2.16 trillion last month, decreased to about US$1.76 trillion at press time.
Crypto sector analysts suggest that recent declines in the price of bitcoin could be a prelude to an even deeper decline, reflecting a looming economic crisis and the decoupling of cryptocurrencies from the broader stock market.
Tristan Dickinson, CMO of exSat Network, told Investing.com that bitcoin is not immune to global macroeconomic events.
“The market capitalization in Japan (down 12%) and the weak performance of the S&P 500 increased the climate of fear of the global recession.”
Tristan believes that corrections are inevitable and if bitcoin exceeds $50,000, it could mark the beginning of a bull market. “However, caution is warranted as August and September are historically volatile months, suggesting the possibility of a move to the opposite side and further testing of bitcoin’s support levels,” he said.
Ethereum also fell significantly, losing nearly 25% of its value in just two hours, the biggest daily drop since May 2021. At the time of this report, it was trading around $2,190, having recovered from lowest level of US$2,170 at the. the beginning of the day. and there were drops of more than 10%.
Rumors that a major market maker was liquidating assets following large transfers of Ether to centralized exchanges fueled the selloff.
Desperate bitcoin selling and panic in the crypto market were driven by a widespread crash in financial markets, driven by fears of a global recession and rising tensions in the Middle East. The Japanese index fell 12.4%, the index fell 2.8%, and the micro index future suffered a loss of 2.9%.
and led to losses among the top ten cryptocurrencies by market capitalization. Solana fell almost 28% in the past week, reaching $133, while Dogecoin fell about 23%, approaching $0.10.
The recent wave of bear markets was exacerbated by an unfavorable US jobs report on Friday. This report raised fears of an impending recession affecting the stock market ahead of the weekend.
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