Crypto market wrap: Bad start for altcoin prices, bitcoin
Updated
Altcoin prices and bitcoin had a bad start to the week on Monday as the cryptocurrency market sagged.
All leading altcoins were down, along with most others, as bitcoin fell below $22,000 after looking like it could crack $24,000 late last week.
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CVX to USD
Convex hit hard
Convex (CVX) was among the hardest hit as its price was down about 14% around the time that conventional markets closed in North America. (All figures based on CoinMarketCap data.)
NEAR was far from green territory, falling 11%. MINA and FANTOM were down the same amount, while polygon (MATIC) dropped 10%. Ethereum Classic (ETC) fell about 6% after skyrocketing 73% on Friday.=
NEAR to USD
Bitcoin heads south
The crypto sector’s decline came after it had thrived last week. Bitcoin headed south after it had unexpected challenged $24,000 last week – shortly after many observers fretted that the coin would stay below $18,000.
The crypto sector’s downward movement coincided a NASDAQ decline as investors appeared to brace for the US Federal Reserve’s anticipated 75-basis-point interest-rate hike on Wednesday and the US Commerce Department’s monthly GDP data release on Thursday.
Recession fears
Investors are concerned that the GDP data could signal a recession.
Bitcoin and the crypto sector as a whole have performed largely in tandem with stock markets, particularly the tech-heavy NASDAQ, this year.
MATIC to USD
Murkiness continues
The world’s leading cryptocurrency is up about 15% over the past month, and other tokens have risen even more, Bloomberg reported.
Two weeks ago, Trivio head of labs Angus Robb and Thomas Hall, an analyst with the company, said bitcoin had reached a “muddy bottom.”
The murkiness continues, according to Miller Tabak chief market strategist Matt Maley.
Hard to maintain confidence
It’s difficult to call a bitcoin bottom, and even more so “with this one, because its rally was fueled so much by young people who had never invested in anything before,” he told Bloomberg.
“Crypto is a liquidity asset right now, so as long as the Fed is tightening, it’s going to be hard for it to see a sustained rally. Second, the asset class has lost a lot of confidence with investors, so it’s going to take time for it to regain that confidence.”
Shawn Cruz, head trading strategist at TD Ameritrade, told Bloomberg that investors will need to show more risk appetite before bitcoin can start to move significantly higher.
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