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HomeCrypto AnalysisAfter Surging Over the Weekend, Bitcoin and Other Cryptocurrencies Fell Back on...

After Surging Over the Weekend, Bitcoin and Other Cryptocurrencies Fell Back on Monday.

Anxiety about a recession has shaken the broader markets, and the week ahead has critical triggers that might see additional volatility. Digital asset investors are not exempt from this fear.

Bitcoin’s price dropped by 3% in the last day and was trading around $20,500, down from a high of $22,000 reached on Friday and maintained throughout the weekend.

There has been a steep decline in the value of digital assets this year, with the total market capitalization of cryptos falling from roughly $3 trillion to $920 billion.

The failure of a large hedge fund, the meltdown of stablecoin Terra, and the demise of Celsius and Voyager Digital are all examples of price declines that have led to fissures in the crypto ecosystem.

Because of rising worries of an impending economic downturn, the crypto market has continued its downward path. The recession has seen a huge spike in Google searches in the last few weeks, according to Marcus Sotiriou, an analyst at digital asset dealer GlobalBlock.

Investors are alarmed by the prospect of a downturn in the economy. The Federal Reserve has already tightened monetary policy in response to rising prices and the highest inflation rates in decades. As a result, the danger is that further aggressive interest-rate hikes may cause a recession to take hold.

News in the next week might provide insight on inflation and how businesses see the economy, which could have a significant impact on both equities and cryptocurrencies. When consumer price inflation (CPI) data is released on Wednesday, it is expected to be at a 40-year high of 8.8 percent year on year.

We’ll also see the start of the financial reporting season this week. JPMorgan Chase (JPM) and Morgan Stanley (MS) led the pack on Thursday, followed by Citi (C) and BlackRock (BLK) on Friday.




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