Crypto Market Shakes as Bitcoin and Ethereum Plunge to Multi-Month Lows
Crypto Market Shakes as Bitcoin and Ethereum Plunge to Multi-Month LowsCrypto markets experienced another wave of volatility on Monday, with Bitcoin and Ethereum both plummeting to multi-month lows. The slump was primarily driven by weak economic data, which escalated investor concerns about a US recession and led to a flight to safe haven assets, pushing down prices of high-risk assets like cryptocurrencies
Crypto Market Shakes as Bitcoin and Ethereum Plunge to Multi-Month Lows
Crypto markets experienced another wave of volatility on Monday, with Bitcoin and Ethereum both plummeting to multi-month lows. The slump was primarily driven by weak economic data, which escalated investor concerns about a US recession and led to a flight to safe haven assets, pushing down prices of high-risk assets like cryptocurrencies.
Earlier this year, the US Securities and Exchange Commission (SEC) approved an exchange-traded fund (ETF) tracking the spot prices of Bitcoin and Ethereum, which had boosted the crypto market. However, a broad sell-off has recently gripped Bitcoin, alongside other assets, including global equities. Investor worries about a potential US recession, coupled with geopolitical concerns, have further heightened market volatility.
Data shows that Bitcoin has fallen nearly 20% since its peak in March. Commenting on the decline, Tony Sycamore, market analyst at IG, remarked, "This serves as a reminder that Bitcoin and cryptocurrencies, in general, are risk assets and sit at the very edge of the risk spectrum." Sycamore highlighted that Bitcoin is testing the trend channel support at the $54,000/$53,000 area, and needs to hold this level to "prevent a further surrender towards $48,000."
The recent downturn underscores the highly volatile nature of the crypto market and its sensitivity to the macroeconomic environment. Investors need to keep a close eye on US economic data and the evolving geopolitical landscape to gauge the future trajectory of the crypto market.
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