Bitcoin: BTC falls back below $58,000 after a brief rebound during the day, ETH holds up slightly
- Bitcoin suffered a sudden drop of nearly 6% overnight Tuesday into Wednesday, erasing recent gains following a supportive speech by Jerome Powell and the pro-crypto alliance of Trump and RFK Jr.
- ETH has held up better with a 3% drop over the same period, but remains underperforming Bitcoin since the start of the year, notably due to the limited success of Ethereum ETFs.
- The macroeconomic context, marked by a decline in the US stock markets and uncertainty over future Fed decisions, is contributing to the pressure on cryptocurrencies, with particular attention to upcoming economic reports.
On the night of Tuesday to Wednesday, while the markets were enjoying a little calm, the crypto market was shaken by a sudden drop in bitcoin.
In the space of a few minutes, the leading cryptocurrency has lost almost 6%thus erasing the significant gains recorded at the end of last week following an accommodating speech by the President of the Federal Reserve, Jerome Powelland to the alliance of pro-crypto presidential candidates Donald Trump And RFK Jr.
Despite a temporary rebound, which saw the Bitcoin climbs back above $60,100 On Wednesday, this recovery quickly faded. By late afternoon, Bitcoin drops below $58,000marking a down more than 5% in the last 24 hours.
Ethereum Follows Trend, But Gap With Bitcoin Widens
Ethereumthe second largest cryptocurrency by market cap, has held up slightly better, losing just 3% over the same period. However, in the long term, ETH underperformed compared to Bitcoin, recording a down more than 20% since the beginning of the year in terms of relative value to Bitcoin, reaching its lowest level since April 2021. At $2,490 at the time of writing, the ETH annual increase in 2024 has been reduced to just 9%, against a Bitcoin up 39%.
This divergence between the two cryptos is partly explained by the contrasting success of their respective launches. of ETF this year. The Bitcoin ETFs Attract Over $10 Billion in Net Inflowswhile investment vehicles based on ETH have, on the other hand, seen their assets decrease since their introduction.
A less favorable macroeconomic context
This pressure on cryptos adds to the declines observed on the main American stock indices, led by a Nasdaq down 1.3%very technology oriented. The Nvidia shares fall 3% (NVDA), ahead of its quarterly earnings release scheduled for Wednesday evening, has been a particular contributor to this trend. While Nvidia is still slightly below its all-time high reached earlier this summer, The stock remains up 159% since the start of the yearleaving plenty of room for correction if its results or outlook are disappointing.
Moreover, a reversal is beginning to emerge in the optimism generated by the Jerome Powell's accommodating statements at last week's Jackson Hole conference. Traders had quickly priced in a nearly 50% chance that the Fed would cut its benchmark rate by 0.5% at the September meeting, up from the 0.25% initially assumed. But the odds appear to be reversing again, with 36% chance for a 0.5% increase From now on.
However, many economic indicators, including the August employment and inflation reports, are still due before the September meeting. For the Fed Opts for Such a Large Rate Cutthese figures will probably have to be particularly low.
The article Bitcoin: BTC falls back below $58,000 after a brief rebound on the day, ETH resists slightly appeared first on Coin Academy