Key Takeaways:
The price of major cryptocurrencies has taken an alarmingly bearish turn today as the expectations of a recession in the US economy shot up significantly over the past week. Bitcoin (BTC) price tanked over 14% to the $52,000 range, while Ethereum (ETH) crashed by over 20% to trade at $2,294.
Bitcoin And Ethereum Prices Tank As Markets Fear Recession In The US
Simultaneously, the global crypto market capitalization plunged 12.50% to $1.89 trillion today, with $300 million in various positions liquidated in the last four hours. According to data from Coinglass, more than $800 million worth of liquidations happened over a 24-hour period. Out of these, $700 million is in long positions, while $106 million is in short liquidations.
Wall Street is largely expecting a recession for the US economy as the probability of a hard landing has increased. Renowned economist Peter Schiff took to X to say that the Federal Reserve “played with fire” for years and “now the world is about to be burned”.
He criticized the US central bank for keeping interest rates on the dollar artificially low, to blow up the global debt bubble. The popular gold bug noted that the “game is over” as inflation and rising interest rates “pricked” the debt bubble and are now starting to reflect across the markets.
US stock index futures also plunged considerably during Monday’s correction. This is amid the current rout in the US tech market and uncertainty in the global macro conditions. The rising geopolitical tensions in the Middle East have added more fuel to the fire, further weakening the already tense market.
On Friday, US markets fell sharply after the release of a weaker-than-anticipated jobs report for July. The Nasdaq dropped almost 10% from its all-time high, while the S&P 500 fell 1.84% and the Dow Jones Industrial Average pulled back 1.51%.
$300 Million In Crypto Liquidations During Asian Trading Hours As Nikkei Crashes By 7%
Crypto sell-off intensified during the Asian trading hours after the Nikkei crashed another 7% today. The latest crash extended the index loss of the Japanese stock market to more than 20% from its top in July.
Bitcoin is currently experiencing its worst-ever sell-off since the collapse of the FTX crypto exchange in November 2022. Last Friday, spot BTC exchange-traded funds (ETFs) saw their largest outflow in three months.
With the world’s largest cryptocurrency price falling under its 200-day moving average, the bears have taken control of the market.
Over the last 24 hours, Bitcoin’s peak and slumps were recorded as $52,559 and $61,058, indicating a highly volatile movement. Its market dominance stood at 56.62%, which is an increase of 0.98% since the previous day.
Peter Schiff predicts that Bitcoin ETFs will move between 15% and 30% below their record highs from January when the investment funds backed by the cryptocurrency were first launched in the US.
Meanwhile, in the last 24 hours, ETH recorded its 24-hour top and bottom prices at $2,923 and $2,122, respectively. Ethereum’s slump comes against the backdrop of Jump Trading officials offloading a whopping $500 million worth of the cryptocurrency over the last 10 days.
How Did Other Leading Cryptocurrencies Fare?
The fate of other leading cryptocurrencies wasn’t better either. Solana (SOL) dipped 11.42% in the last 24 hours to reach $127.94 today. The altcoin recorded tops and bottoms of $144.95 and $124.24 over the past day.
Concerningly, data from Whale Alerts reveals that investors may dump significant amounts of SOL to exchanges over the weekend, which aligns with the token’s waning movement.
Ripple (XRP) plunged 14.92% over the past day to trade at $0.4793. The cryptocurrency’s lows and highs were established at $0.4675 and $0.5583, respectively.
Meanwhile, Dogecoin (DOGE) saw its price tumble 1.62% over the past day and Shiba Inu’s (SHIB) price fell over $14.87% in the last 24 hours. PEPE, WIF, and FLOKI have crashed by 18%-21% since yesterday.
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