The price of Bitcoin has fallen sharply, amid what appears to be widespread concern in the financial markets. The world's largest cryptocurrency has fallen more than 7% in the last 24 hours and almost 12% in the last week. Other digital currencies have seen similar, but not as steep, declines. Ethereum, the second-largest cryptocurrency by market capitalization, lost about 10% of its value last week. These comments mean that the crypto market as a whole is down 5.7% in the last 24 hours, according to the tracking website Coinmarketcap. Trading volume has also risen sharply and has risen almost 80% in the last 24 hours. Thursday's drop in cryptocurrency prices was the biggest one-day drop since November 2022. It came as the FTX exchange rate crashed, sending a wave of fear to markets across crypto and causing widespread panic. At this time, there is no clear connection with the events in the cryptocurrency market. Instead, investors seem to be worried about the economy in general, and other traditional assets have also been affected by the decline in recent days. Wall Street's major indexes fell on Friday, falling for a fourth straight session of declining mega-cap stocks, as evidence of a volatile U.S. economy fueled fears of rising interest rates. high for a long time.
Three U.S. stock indexes headed for higher weekly losses as a slew of strong economic data, including a drop in weekly jobless claims, caused investors to adjust their expectations for lower rates and raise government bonds. The yield on the 10-year Treasury reached a 10-month high of 4.328% in the previous session and was a hair's breadth from the highest level since 2007. Art Hogan, chief market strategist at B Riley Wealth, said, "The drivers in the past have been rising stocks and that shows the impact of risk-free investing." "Investors are looking at (better than expected economic data) saying the Fed may not be holding back."Traders see a nearly 91% chance the Fed will hold rates at current levels at its September meeting, according to CME Group's FedWatch tool. On Friday, major tech heavyweights such as Apple, Microsoft, Tesla, and Nvidia fell between 0.7% and 2.8% even as stocks gained momentum. The Communications and Technology Services sector, home to the largest growth burden, fell 1.6% and 1.0% respectively. The tech-heavy Nasdaq fell in more than two months and was expected to post its biggest weekly decline of three points, down 3% so far. The CBOE Volatility Index hit its highest level in nearly three months, reflecting growing investor concerns.
“The drivers really have been of late the rising Treasury yields and that is signaling a more risk-off investor sentiment,” said Art Hogan, chief market strategist at B Riley Wealth. “Investors are looking at (better-than-expected economic data) and saying the Fed likely isn’t restrictive enough yet.”
