Connect with us

24/7 Cryptocurrency News

Recession Fears Erupt Amid Bullish Crypto Market Sentiment, What’s Next

Published

4 days ago

on


With the Bitcoin price sliding below $100k, the crypto market sentiments drifted away from the ‘Greed.’ However, the outlook can get even worse, as the recent market finding hints at the possibility of a global economic recession, which could create a major crash for all financial markets. Let us discuss the analysts’ recent findings on the recession and its impact on the crypto industry.

Bullish Crypto Market Sentiment at Risk With New Recession Prediction

An on-chain analytics firm, Bravos Research has brought investors’ attention to a rare but historically significant event. According to the firm, the yield curve has just un-inverted, and the last three times it happened, it led to economic downturns. Overall, these findings highlight the possibility of the upcoming recession, as the short-term bond yield has dropped below the long-term yield before reverting. Interestingly, this is the widely popular and accurate indicator of economic recession, which predicted the Great Depression of 1929, the dot-com crash in the 2000s, and the financial crisis 2008.

Now, the yield curve has been inverted ever since early 2023 but has finally been un-inverted, concerning the investors and their sentiments. However, there are minor changes that could delay the recession. The Bravos Research findings revealed that there is un-inversion but the 10-year yield rose, which has not happened in the previous cycles. Additionally, the GDP growth and unemployment hikes in the previous recession align with the falling yield. However, that is not the case in the present situation. The rise in 10 year-yield shows resilience in economic fundamentals.

Yield Curve Recession PredictionYield Curve Recession Prediction

Eventually, this divergence disturbs the recession prediction, but it does not completely change that. The recession’s possibility could still continue and affect the Bitcoin and the market despite the rise of unemployment rates and the steepening of the yield curve.

How Will the Crypto Market React?

Although the crypto market often moves against the traditional market, the recession and similar macroeconomic events could also break the performance of digital assets. As all the financial markets rely on capital inflow, a recession can impact investors’ risk-taking sentiments. Meanwhile, the interest rate goes up, which prevents borrowing to invest. However, historical records also show that compared to the traditional market, recovery in most cases is faster in terms of crypto sentiments. Regardless, Bitcoin and the rest of the top cryptos have not witnessed a major recession. This is why an accurate market behavior prediction is hard to conclude.

For now, analysts believe that increasing bond yield could trigger volatility in most financial markets, whose impact will be seen in crypto market sentiments as well. However, as the reports hint, if the recession is delayed, it could present further opportunities for strategic accumulation.

What Investor Should Do Next?

The crypto market depends on hundreds of factors and could occasionally bring high volatility. The recession period will bring a similar outcome but on a higher level. For situations like this, crypto analysts have often suggested working with a diversified crypto portfolio and implementing risk management tactics. More importantly, investors should look for a long-term growth outlook and invest in utility-based tokens like Bitcoin. The Rich Dad and Poor Dad, Robert Kiyosaki, say, buy and forget. Interestingly, Kiyosaki confirmed a global market crash but called that a buying opportunity rather than a threat.

✓ Share:

Pooja Khardia

With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.

As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage

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
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

24/7 Cryptocurrency News

Ripple CEO Brad Garlinghouse Confirms Mar-a-Lago Meeting with Donald Trump

Published

39 minutes ago

on

January 8, 2025

By


Ripple CEO Brad Garlinghouse revealed on social media that he recently had dinner with former President Donald Trump and Ripple’s Chief Legal Officer, Stuart Alderoty.

The meeting that happened at Trump’s Mar-a-Lago resort is an important beginning to the year 2025 for Ripple especially with the current changes happening in the cryptocurrency market.

Ripple CEO and CLO Meeting with Donald Trump

On Monday evening, Ripple CEO Brad Garlinghouse revealed his meeting with Donald Trump and Stuart Alderoty on the platform X (previously Twitter). “Had a great dinner last night with @realDonaldTrump & @s_alderoty. ”Great start to 2025!” he posted indicating that things are looking good for Ripple.

Stuart Alderoty, Ripple’s legal head, also commented on the event, joking about the dinner’s menu: “The beef bourguignon was really good.”

The dinner at Mar-a-Lago takes place at a time when Ripple has been building up its steam with wins against the U.S Securities and Exchange Commission (SEC) in court.In line with the optimism, crypto analysts have provided bullish signals for XRP, some of whom have forecasted a price surge to $3.

John Deaton Breaks Silence on Ripple CEO Meet Up

Ripple has recently come into the limelight for its legal victory against the SEC where the latter had alleged that the company and Garlinghouse sold unregistered securities via XRP. The lawsuit that lasted for more than two years concluded with the victory of Ripple, which opened up new possibilities for the future of the cryptocurrency market.

John E. Deaton, a pro XRP lawyer and following the case commented on X that Ripple’s win means that the company has remained unshaken. He also pointed to the SEC’s aggressive approach in the litigation process, which involved serving Garlinghouse with personal subpoenas to produce financial information.

”Ripple and Brad disclosed every XRP transaction that has ever taken place, but the SEC acted misconduct when it came to discovery,” Deaton said. However, Ripple has come out even stronger, suggesting that more positive outcomes are in the offing for the company and the sector as a whole.

Cynthia Lummis Chats With US SEC Potential Chairman

Ripple CEO, Brad Garlinghouse has also noted recent expansion of Ripple’s activities within the United States which shows that the focus has shifted back to the domestic market.He disclosed that three quarters of the new positions at Ripple are based in the United States, something that was not the case in the past given the company’s focus on the international market.

Furthermore, the company signed up more US business contracts in the last six weeks of the year 2024 than it had in the six months prior to that period.

The dinner comes after several meetings between politicians and crypto enthusiasts. U.S. Senator Cynthia Lummis, an advocate for blockchain technology, has also been engaging with Paul Atkins, the man expected to be named SEC chairman by President-elect Trump. These discussions focus on the need to reform the SEC’s rule making process and to advance the use of digital assets.

Ripple’s Growing Market Influence

Ripple is also coming up strongly in the blockchain space with new products being introduced. Ripple President Monica Long stated that the stablecoin, RLUSD, which was recently launched, is expected to be listed on multiple platforms.

At the same time, the company has joined Chainlink to work on the integration of secure and accurate pricing of RLUSD into the DeFi ecosystem.

In these developments, Ripple has witnessed a rise in its valuation due to the increased prices of XRP and the increasing adoption of its solutions. Ripple CEO Brad Garlinghouse has earlier stated that the $11 billion valuation of the company is quite dated given the current situation.

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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

Why BTC, ETH, DOGE, & Other Altcoins Fell

Published

5 hours ago

on

January 7, 2025

By


The cryptocurrency market was in the red on Tuesday as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and other digital assets tanked. The crypto market crash happened at the same time as other risk-off events across the global financial market due to higher US treasury yields, a more hawkish Fed, and increased macroeconomic risk.

Why The Sudden Crypto Market Crash?

  1. Rising U.S. Treasury Yields Trigger Risk-Off Sentiment

The crypto market has been declining today, and one of its leading causes was the increase in bond yields. The 10-year U.S. Treasury yield rose to 4.70%, with the 30-year and 5-year U.S. Treasury yields also up at 4.61% and 4.50%, respectively.

For context, higher bond yields make traditional investments more attractive, drawing capital away from riskier assets like cryptocurrencies. This shift also lead to further sell-off across other assets classes, including equities. The Nasdaq 100 dropped more than 1 percent and popular tech stocks including NVIDIA and Tesla suffered lossesFor instance, Tesla stocks fell by 4.68% to $391.81 per share wiping off $19.24 of the share value.

     2. Hawkish Federal Reserve Outlook Adds to Pressure

Moreover, the stance of the Federal Reserve’s monetary policy also played a big role in influencing investor perception. Minutes from the December meeting estimated lower interest rate cuts in 2025 than earlier projected.

The reports before the Fed minutes unveiled a robust labour market with job openings climbing to a six-month high. This led to a question of a possible continued inflation, which would mean a stricter monetary policy. In the past, tighter policies have been unfavorable to the cryptocurrencies as the higher interest rates make the cryptocurrencies unattractive.

Also, JOLTS job openings increased by 259,000 to 8.1 million in November 2024, which was the second straight month of growth. Professional services and finance were the best performers in the market. ISM Services PMI also pointed to the continuation of economic performance which stirred the fears of limited fed rate cuts in 2025.

     3. Macro Uncertainty and Broader Economic Concerns

Uncertainty in the U.S. economy has heightened market volatility. Fiscal policies under President Donald Trump and the looming debt ceiling have created investor unease. Rising fiscal deficits and unclear Treasury strategies add to the concerns, further impacting market confidence.

Analysts, including Arthur Hayes, predict a short-term boost for crypto in Q1 2025 due to increased U.S. dollar liquidity. The Treasury’s spending could temporarily fuel gains for Bitcoin and Ethereum. However, the need to refill the Treasury General Account and April’s tax season could reverse these gains, leading to a crypto market crash.

Crypto-linked stocks like Coinbase and MicroStrategy have also suffered sharp declines. Rising bond yields and the Federal Reserve’s hawkish stance have intensified the sell-off. This downturn reflects the interconnected nature of global markets

BTC, ETH, DOGE, And Altcoins Price Action Amid Crypto Market Crash

The crypto market’s losses were pronounced, with major cryptocurrencies suffering steep declines and trading volumes surging amid the sell-off.

Bitcoin (BTC) price dropped 5.04% to $96,713, falling below the $100,000 psychological support level. The 24-hour trading volume rose 13% to $55.12 billion, indicating increased activity as traders reacted to the downturn. Its market capitalization declined to $1.91 trillion, reflecting the broader BTC bearish sentiment.

BTC priceBTC price
Source: CMC

Meanwhile, Ethereum (ETH) was down by 8% to $3,394 after failing to hold the $3,600 level. Market capitalization of the company fell to $412.29 billion, while trading volume rose by 21% to $28.23 billion. Rising volatility indicated that the investors are more uncertain as compared to the previous periods in this environment.

Likewise, the value of XRP price declined by 5.66% to $2.29 as market capitalization fell by 6.03% to $131.29 billion. Nevertheless, the trading volume rose to $6.95 billion, which is 57.57% more, which shows increased activity.

The crypto market crash also affected top meme coins. Dogecoin (DOGE) recorded a 9.12% drop to $0.3546. Its market capitalization decreased to $52.3 billion, and trading volume soared 54% to $4.6 billion. The increase in trading activity reflected mixed reactions, ranging from profit-taking to panic-driven selling.

✓ 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. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. 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

Bitwise CIO Reacts As Czech Republic Mulls Bitcoin Reserve

Published

9 hours ago

on

January 7, 2025

By


Matt Hougan, the Chief Investment Officer (CIO) of American asset management firm Bitwise, has reacted to the news of the Czech Republic’s strategic Bitcoin reserve plans. Having predicted earlier that nation states adoption of Bitcoin will soar this year, Hougan noted that “the dominos start to fall.”

Czech Republic Bitcoin Plans

In a CNN Prima News interview, Aleš Michl, the Governor of the Czech National Bank, revealed they are weighing how to diversify the country’s reserves with Bitcoin. However, he added that there are no active strategies in place to make this move yet.

While Michl said he favors the onboarding of Bitcoin as an asset diversifier for the Czech Republic, he said this decision is not solely his to make. He said there are seven members on the board whose say might also sway the ongoing discussion. Despite the lack of concrete plans, the Governor acknowledged that;

“Bitcoin is an interesting option for diversification against other assets.”

On his part, the Czech Republic National Bank executive said he plans to add just a few Bitcoin units with no plans to make a significant investment. This plan to make Bitcoin a strategic reserve asset aligns with the growing conversations in different nations. While Japan rejected the BTC reserve idea, different states in Switzerland continued to explore the plans.

MicroStrategy bought 258,320 BTC in 2024, and with this, the focus on the top coin has grown over the past few months. While corporate firms are looking to borrow the MicroStrategy playbook, Matt Hougan predicted that governments will firm one of the three insatiable demand sources for Bitcoin this year.

The Wait on Donald Trump Administration 

The Czech Republic is considering adopting Bitcoin as a strategic asset, marking a major advancement in the idea that started with Donald Trump. During his Presidential election campaign, Trump promised to establish a strategic Bitcoin reserve in the United States. The crypto community is now very expectant following his victory.

On his part, the President-elect is convening a crypto advisory council that will help look into the BTC strategy. Many industry leaders are in support of the plan, highlighting how it can help the country solve its growing debt challenge.

However, the economic viability and longer-term impact on the US Dollar remain a concern that might derail the plans overall. In light of this, Peter Schiff proposed USACoin as an alternative to the BTC reserve plans, as reported earlier by Coingape.

Bitcoin As Biggest Beneficiary

Amid the growing conversations around the adoption of Bitcoin, the coin has a major prospect of continuing to grow. Notably, the top five Bitcoin price predictions for 2025 peg the coin at a range of $200,000 to $500,000, hingeing on its status as a reserve in most nations’ portfolios.

Currently, the coin is down by 4.45% in 24 hours to $97,173.39. The coin dropped from a high of $102,712.48 as investors cooled off from the latest rally.

✓ Share:

Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Follow him on X, Linkedin

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