Connect with us

24/7 Cryptocurrency News

5 Reasons Why Bitcoin & Altcoins Dropping Today

Published

2 months ago

on


Today’s cryptocurrency market has witnessed a dramatic downturn, with Bitcoin (BTC) plummeting and Ethereum (ETH) extending below $3,000. Furthermore, other altcoins also suffered a similar trajectory. In addition, fear, uncertainty, and doubt (FUD) mounted owing to fears of recession. Here are the five reasons for today’s crypto market crash:

1. Disappointing Nonfarm Payrolls Data

The latest U.S. nonfarm payrolls report revealed that only 114,000 jobs were added in July, significantly below the anticipated figures. Additionally, the unemployment rate unexpectedly rose to 4.3%, marking its fourth consecutive increase.

According to BlackRock’s Jeffrey Rosenberg, “The reaction here is probably the right reaction. We’ve had a string of disappointing data, and that’s pushing more concerns about the economic outlook.” The weaker-than-expected jobs data has stoked fears of a slowdown, impacting risk assets including cryptocurrencies.

2. Rising Recession Fears

The weak jobs report has intensified recession fears, with economist Peter Schiff amplifying these concerns. Schiff argued, “Rate cuts will fail to revive the economy or employment, but they’ll heat up already hot inflation. This isn’t your father’s stagflation. It’s much worse!”

His comments highlight fears that the Federal Reserve’s potential rate cuts might not prevent a recession and could instead accelerate inflation. These concerns are fueling broader market volatility and and catalyzed today’s crypto market crash.

Furthermore, Schiff criticized the poor performance of Spot Ethereum ETFs as these investment products continued outflows. He also predicted that at this rate, the ETH price will be back to $2,000 level. Currently, ETH is barely holding above $3,000.

Also Read: Bitcoin & Crypto Cheques To Clear $35T US Debt, Donald Trump Says

3. Bitcoin Long Liquidations

The cryptocurrency market has seen a surge in long liquidations over the past 24 hours. Approximately $241.07 million worth of long positions were liquidated, accounting for 90% of total market liquidations. This large-scale unwinding of positions has intensified the downward pressure on crypto prices.

Bitcoin Crash Leading to Crypto Market LiquidationsBitcoin Crash Leading to Crypto Market Liquidations
Source: Coinglass

In addition, BTC price crash, from $65,000 to $60,000, reflects this significant liquidations impact. Coinglass data also revealed that the 14% drop in BTC price over the past five days also resulted in around $1 billion worth of long positions being liquidated.

4. Stock Market Decline

The broader stock market decline has further weighed on the crypto market crash. On Friday, August 2, stocks fell sharply as the weaker-than-anticipated jobs report ignited worries of an economic downturn. The broad market index plunged 1.84% to end at 5,346.56. In addition, the

Nasdaq Composite lost 2.43%, closing at 16,776.16. This brings its decline from a recent all-time high to over 10%. Furthermore, the Dow Jones Industrial Average lost 610.71 points, or 1.51%, finishing at 39,737.26, with the index plunging as much as 989 points at its session low. This stock market decline has potentially spilled over into the crypto market.

5. Bitcoin & Ethereum ETF Outflows

Both Bitcoin and Ethereum ETFs have faced significant outflows, contributing to the market’s woes. Bitcoin ETFs saw $237.4 million in outflows on August 2, with a weekly total of $80.4 million. Meanwhile, Ethereum ETFs experienced outflows totaling $54.3 million for the day and $169.4 million for the week.

Grayscale’s ETHE saw $61.4 million in outflows on Friday. These negative ETF flows coupled with Genesis Trading’s bankruptcy repayments in BTC and ETH may have exacerbated the crypto market crash.

Also Read: Nvidia Beats Bitcoin In Risk-Adjusted Returns, Trend To Continue?

✓ Share:

Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Related Topics:
Continue Reading

24/7 Cryptocurrency News

Bank of Japan Keeps Interest Rates Unchanged, Bitcoin and Altcoin Rally Ahead?

Published

1 hour ago

on

September 20, 2024

By


In a major macro development, the Bank of Japan (BOJ) has decided to keep interest rates unchanged at 0.25%. The development sent the Nikkei index soaring by 2.10% and 700 points today itself. As the fears of the further unwinding of the Yen carry trade subside, Bitcoin and altcoins have also been showing strength with further upside.

Bank of Japan on Future Rate Hikes

In the latest policy update, the Japanese central bank has revised its assessment of consumption. Thus, it showed confidence in a solid economic recovery that would allow the central bank to raise interest rates again in the coming months.

“Private consumption has been on a moderate increasing trend despite the impact of price rises and other factors,” the BOJ said in a statement.

The markets are keeping a close watch on how Governor Kazuo Ueda plans to roll out future BOJ rate hikes amid global economic uncertainty. Moreover, the unprecedented rate hikes this year by the Bank of Japan have exacerbated the fears of Yen carry trade unwinding and the rising Japanese Yen. The Japanese central bank ended the negative interest rates earlier in March, shifting away from its decade-long stimulus program to boost inflation.

In the last month of August, the core consumer inflation hit 2.8% rising for the fourth consecutive month. If inflation remains on track to hit its 2% target, the BOJ will continue with its rate hike said Ueda. The recent Reuters report suggests that a majority of economists expect the BOJ to raise interest rates in December.

Courtesy: Reuters

Bitcoin and Altcoin Rally Ahead?

With the Bank of Japan holding interest rates steady, risk-ON assets like cryptocurrencies are enjoying the upside. The Bitcoin price surged by 3% moving further closer to $64,000. On the other hand, altcoins led by Ethereum have registered gains anywhere between 4-10%.

Bitcoin has been showing strength following the Fed rate cuts earlier this week, for the first time in nearly four years. Interestingly, per the data from Sanitment, this strong recovery has come without any high FOMO. This shows that the Bitcoin and altcoin market recovery is healthy and can continue going further.

Courtesy: Santiment

On the technical chart, the Ethereum price is also showing signs of recovery with the recent jump. Despite the Vitalik Buterin address moving ETH recently, the below chart shows a strong recovery with the potential to rally to $5,000.

✓ Share:

Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

24/7 Cryptocurrency News

Texas Court Dismisses Consensys Suit Against SEC on Procedural Basis

Published

6 hours ago

on

September 20, 2024

By


The United States District Court for the Northern District of Texas dismissed Consensys Software Inc.‘s case against the Securities and Exchange Commission. This was after a long legal battle to determine the status of Ethereum and other similar software products.

Texas Court Ends Consensys Suit Against SEC

The U.S. District Court in Fort Worth has thrown out the allegations made by Consensys against the Securities and Exchange Commission in a recent legal move. The court, presided over by Judge Reed O’Connor, ruled on procedural grounds. The judge determined the claims concerning Ethereum classification and the regulatory approach to MetaMask were not ripe for judicial review. This decision effectively puts an end to the current litigation initiated by Consensys in April of this year.

The dismissal focused particularly on the lack of final agency action from the SEC, which the court noted was a requisite for a substantial legal challenge. This procedural dismissal indicates that despite the issues raised, the court decided not to proceed with evaluating the merits of the case.

Initially, Consensys challenged the SEC’s classification of Ethereum and its derivatives as securities. The complaint highlighted concerns over the SEC’s focus on MetaMask, a software service provided by Consensys that facilitates crypto transactions and staking. 

Despite an earlier notification in June about the SEC dropping its investigation into Ethereum, the broader implications of this regulatory scrutiny remained a contentious issue.

Subsequent to the initial lawsuit, the SEC initiated a separate enforcement action in June, accusing Consensys of operating its MetaMask swaps service without proper registration. 

In addition, according to Judge O’Connor, this case lacked the necessary finality from the Securities and Exchange Commission side to be considered ready for court adjudication.

Reactions and Future Regulatory Steps

The court’s decision to dismiss on procedural grounds does not conclude the legal issues surrounding the regulation of Ethereum and other blockchain technologies. 

More so, Consensys has expressed its intention to continue advocating for blockchain developers and to challenge the SEC’s actions in other jurisdictions, indicating that the struggle over crypto regulation in the U.S. is far from over. The case’s dismissal in Texas does not preclude the blockchain company from pursuing other legal avenues to address their grievances.

In addition, most recently, a US Bankruptcy judge Brendan Shannon approved Terraform Labs plan to liquidate its assets following an ongoing SEC lawsuit.

✓ Share:

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. His work includes notable contributions to Cryptopolitan and Coingape News Media, where he shares his insights on the latest developments in the cryptocurrency market. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

24/7 Cryptocurrency News

Whale Dumps Entire PEPE, FLOKI, and WLD Holdings, What’s Next For These Assets?

Published

12 hours ago

on

September 19, 2024

By


A crypto whale has sold his entire Pepe coin, FLOKI, and Worldcoin holdings amid the recent price surge in the market. The digital asset market notched increased sentiments following interest rate cuts by the Federal Reserve. However, some users point to profit taking which can reduce the projected uphill movement.

PEPE Whale Dumps Assets 

A digital asset whale has sold his holdings in three assets raking in profit. On-chain data shows the trader has sold  $3.2 million in PEPE, FLOKI, and WLD making a $200,000 profit. The whale raked in $110,000 from Pepe coin holdings while netting $45,000 and $44,000 from FLOKI and WLD respectively. 

According to crypto analysts, the trader suffered losses at some point to due price swings after Bitcoin traded below $55K. The drop in Bitcoin price sparked a decline in altcoins and meme coins as the wider market faced a slight correction. Following the Federal Reserve’s decision to slash policy rates by 50 BPS on Sept 18, prices of crypto assets surged leading to traders looking to make a profit. 

Generally, whale movements send a bearish signal to the market due to their total number of holdings with smaller traders moving in the same direction. Recently, the market has seen similar movements from traders to reposition assets amid price swings. This week, an Ethereum whale dumped $38 million worth of ETH sparking negative pressure. 

What’s Next For The Assets? 

The crypto market is soaring off the Fed’s decision to cut interest rates. Several traditional investors projected growth in the market after the September rate cuts as funds flow to risky assets. At press time, the total market cap is up 6% with the market cap hitting $2.1 trillion. In the last 24 hours, PEPE surged 13%, alongside other meme coins.

FLOKI price is up 10% in the same time frame while Worldcoin moved up 8%. Most commentators point to increased gains in the price of crypto assets as macro factors flip positive.

✓ Share:

David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon