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Crypto market wrap: Bad start for altcoin prices, bitcoin

By Monte Stewart


Updated

Photo of man holding coin before graph
Altcoin prices and bitcoin had a bad start to the week as the cryptocurrency market sagged.

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.

ETH/USD

3,195.12 Price
+0.950% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.11 Price
+0.850% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

60,073.45 Price
+2.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

370.55 Price
-1.600% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

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.

Markets in this article

CVX/USD
CVX/USD
2.3351 USD
0.0085 +0.380%
ETC/USD
ETC/USD
22.987 USD
0.101 +0.450%
FTM/USD
FTM/USD
0.48634 USD
0 0.000%
MATIC/USD
MATIC/USD
0.54363 USD
-0.0085 -1.600%
MINA/USD
MINA/USD
0.5281 USD
0.0139 +2.800%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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