$Bitcoin(BTC.CC)$, $Ethereum(ETH.CC)$ and other major coins crashed on Wednesday evening, as the global cryptocurrency market cap lost more than 6.4% to $1.2 trillion at press time.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin (CRYPTO: BTC) | -5.5% | -0.1% | $28,747.98 |
| Ethereum (CRYPTO: ETH) | -8.2% | -7.6% | $1,919.34 |
| Dogecoin (CRYPTO: DOGE) | -7.2% | -1% | $0.08 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| TerraUSD (UST) | -30.112.6% | $0.09 |
| Kadena (KDA) | -22% | $2.30 |
| Helium (HNT) | -16.1% | $7.71 |
Why It Matters: Cryptocurrencies dropped sharply in line with stocks, which crashed on inflation worries and worse-than-expected retail earnings Wednesday.
The Dow closed more than 1,100 points lower or 3.6% to 31,490.07 on Wednesday. The S&P 500 and the Nasdaq ended the day 4% and 4.7% lower respectively.
The yield on the benchmark 10-year bond slid below the 3% mark on weak U.S. housing starts number, a harbinger of weakening growth.
GlobalBlock analyst Marcus Sotiriou said it is unclear what the rate hikes will look like after July. "The market believes there is a 4.5% chance of no more 50 basis point hikes after July and a 36% chance of 1 more 50 basis point hike after July," said Sotiriou in a note.
Sotiriou said he believes that inflation will begin to inflect down in August, September and October.
There are doubts whether the U.S. Federal Reserve would be able to deliver a "soft landing" as it fights inflation, said Edward Moya, a senior market analyst at OANDA.
Bitcoin was dragged down alongside most risky assets as Wall Street suffered the worst loss in almost two years. Bitcoin remains a risky asset and vulnerable to further pain if the de-risking continues tomorrow."
- said Moya, in an emailed note seen by Benzinga.
Cryptocurrency markets face systemic issues with stablecoins beyond the macro fundamentals. Glassnode tweeted that aggregate stablecoin supplies have dropped by a total of $8.4 billion over the last month, the largest such downfall in history.
"This reflects a net capital outflow from the space," said the on-chain analysis firm.
Cryptocurrency trader Michaël van de Poppe said the question remains if Bitcoin can hold the $29,300 level, but said he is expecting a high-low on the apex coin's chart and the asset heading towards the $32,800-$34,000 level.
Chartist Ali Martinez said 2.24 million addresses purchased 26.33 million ETH at $2,300 and weakness in the asset might prompt these to sell, which could see the second-largest coin drop to the "most important support" at $700 where 13.25 million addresses hold 13.1 million coins.
