The crypto market had another bad end on Friday week and sold out to what could be a wild weekend. Yuga Labs plans to cast some form of land for its Metaverse, which ApeCoin And its underlying Ethereum (ETH -1.24%). Blockchain. But that didn’t help with today’s values.
As of 3:10 pm (Eastern Time), Bitcoin (BTC -1.25%). Down 4.1% in the last 24 hours, Ethereum down 5.4%, Coinbase Global (coin -8.13%). It fell 5.9%.
The biggest macro news is that the stock market as a whole is declining as investors sell their risky assets. At the end of the transaction S & P 500 That day fell 3.6% Nasdaq Composite Index 4.2% off. Cryptocurrencies have been highly correlated with the stock market for the past six months, and that is still the case today. I find it interesting that crypto assets haven’t fallen significantly below the market as a whole. This is a small sign that cryptography is becoming more resilient.
There are some broad concerns in the market that can spill over into the crypto ecosystem. First, US gross domestic product fell 1.4% in the first quarter of 2022 based on initial measurements. This can mean that the economy is already in recession. Inflation is rising and prices are rising faster than wages, which can lead to the sale of unwanted assets such as cryptocurrencies.
Coinbase stocks shouldn’t be correlated with cryptocurrency prices, as they incur fees for transactions rather than prices, but it’s common for Coinbase to fall as it goes down. This is one of the reasons why this inventory is declining today.
These down days can be painful, but they are a healthy part of the cryptocurrency market. Asset prices are moving along the market as a whole, rather than volatile to pure speculation.
Every day, it is increasingly built into the crypto economy, which should be good news for the market. In the long run, we expect growth in non-fungible tokens (NFTs), decentralized finance, and other digital products. Bitcoin, Ethereum, especially Coinbase, will be involved in its growth.
The entire market has been revised and sales seem to be getting worse day by day. But in the long run, there’s a lot to love about the crypto industry and the innovations that are being built, and the money that is being invested by private investors and venture capitalists. The market will recover over time, but now the horror has taken over and investors are selling everything that seems at risk at this point.