SAN ANSELMO, CA – JUNE 6: In this photo illustration, the Coinbase logo is displayed on a screen in San Anselmo, California on June 6, 2023. The U.S. Securities and Exchange Commission filed a lawsuit against cryptocurrency exchange Coinbase, accusing it of violating securities laws by acting as an exchange, broker and clearing house without registering with the SEC. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan | Getty Images
cryptocurrency exchange Coin Library Just finished the worst week of the year. bitcoin miner marathon numbers Plunged 20%. A basket of cryptocurrency-related stocks to track Schwab fell to its lowest level since February.
The industry-wide sell-off reflected growing concerns about the health of the U.S. economy and contributed to a broader decline in prices. Bitcoin, ether and general risk assets. Nasdaq, which focuses on technology stocks down 5.8% This week’s performance was the worst since January 2022.
Macro pressures aside, the calendar doesn’t do crypto any favors either. according to coin glassHistorically, September is a difficult month for crypto-asset trading, with Bitcoin falling an average of 4.8%. this Cryptocurrency Fear and Greed IndexA gauge of cryptocurrency market sentiment is firmly in “extreme fear” territory, showing investors are worried about price action.
Bitcoin fell to its lowest level since February, down 4% in the past 24 hours to around $54,000.
Bitcoin and Ethereum prices year-to-date
The broader market suffered its worst sell-off on Tuesday in a week shortened by the Labor Day holiday Manufacturing data weak raising concerns about an economic slowdown. 11 U.S. Spot Bitcoin ETFs Worst day in more than four months After the report was released, more than $287 million was collectively withdrawn from ETFs.
The numbers were terrible all weekend long. On Friday, the U.S. Bureau of Labor Statistics report The labor market cooled, with employment numbers lower than expected in August.
Coinbase had one of its worst trading weeks of the year.
Research analyst Leena ElDeeb said: “The recent U.S. labor market results are a critical moment for risk assets such as Bitcoin, as the labor market is considered the main sector that may influence the Federal Reserve’s decision to cut interest rates this month.” Via electronic Contact ETF issuer 21Shares via email.
The total cryptocurrency market capitalization has dropped nearly 30% from its peak of $2.67 trillion in 2024, and is currently at $1.9 trillion. Altcoins like Solana Sol token, Ripple and Cardano’s ADA It has fallen more than 8% in the past week. Ethereum, the world’s second-largest cryptocurrency, plunged 12% to around $2,200.
Cryptocurrency stocks hit hardest
While it’s been a rough week for risk assets of all kinds, things have been particularly bad for investors who are overinvested in cryptocurrency stocks.
Schwab Asset Management’s Cryptocurrency Themed ETF (STCE)including microstrategy, marathon numbers, Riot Blockchainand Coinbase fell 11%.
Coinbase, stuckCourt proceedings with the SEC Prices plunged 20% to their lowest levels since February amid an investigation into whether the exchange was engaging in unregistered securities sales. MicroStrategy, the Bitcoin collection company founded by Michael Saylor, fell 14% this week after falling 12% the previous week.
Top Bitcoin mining companies all ended the week with double-digit losses, including clean sparkplunged 24%. Anti-riot platform A loss of 17%.
The decline is a continuation of last month. However, JPMorgan Chase Trading volumes increased in August, with total average daily trading volume up 8% from the previous month, analysts said in a report on Friday, citing TradingView estimates.
Coinbase and Marathon Digital this year
As investors turn to what’s to come, one area of focus is the Federal Reserve.
The central bank is likely to cut its benchmark interest rate for the first time in four years when it meets on September 17-18. Fed Chairman Jerome Powell It said last month that “the time has come” to adjust interest rate policy. Analysts expect a drop of 0.25% or 0.5% from the current level of 5.25%-5.5%.
Loose monetary policy is generally a good thing for risky assets like cryptocurrencies, which tend to attract more investor inflows when borrowing costs fall.
The latest data on inflation will be released on Wednesday, with the Consumer Price Index for August. The data is another key indicator the Fed will consider ahead of its September meeting.
Tuesday’s U.S. presidential debate could also be a price driver for the cryptocurrency market. Republican presidential candidate Trump brand yourself As a pro-crypto presidential candidate, he recently made headlines at the largest Bitcoin event of the year Located in Nashville. many people in the industry look Trump’s potential re-election as president has been a catalyst for the industry, in part because he has vowed to oust the SEC chairman Gary GenslerHe has long been viewed as a cryptocurrency skeptic.
