Bitcoin sinks below $40K amid fears of global recession
Despite lingering worries about inflation and a possible global recession, the flagship crypto continued to decline on Tuesday.
Recently, bitcoin fell below $40,000, down 5.4% for the day after hitting a high above $47,000 in late March.
Ethereum, the second-largest crypto by market value, is trading at around $3,000, down more than 6% since the middle of last month, after dropping below that threshold earlier in the day.
Optical
- Bitcoin's 50-day moving average drop below $42,000 has investors worried. In the event of a correction below this level, a direct path to the area of the March lows near $38,000 is likely.
- Dogecoin and Shiba Inu meme coins were also significantly downed. There was little trade.
- Hayes, the former CEO of BitMEX, believes stock markets could crash if interest rates rise and the Fed stops its asset purchases. Hayes predicts that crypto markets will continue to decline and Bitcoin will fall to $30,000 and Ether to $2.5,000 by June.
- The New York Fed released a study on Monday revealing that US consumers expect inflation to pick up in the near future. Food and housing prices are expected to rise significantly over the next 12 months, pushing inflation expectations from 6.0% to 6.6%. Expectations for 3 years down 4.2%.
- According to consumers, rents are expected to increase by 10.2% over the coming year, while the cost of food will jump by 9.6%.
- A 6% increase in house prices is expected, compared to 5.7% previously. Survey participants predict that inflationary pressures will get worse before they get better, which will worry Federal Reserve officials.
The Russian invasion of neighboring Ukraine disrupted supply chains and increased energy costs, which was already increasing crypto investor anxiety.
In an attempt to link Donbass with Crimea on the Black Sea, Russian forces continued to masse in the eastern region of Donbass on Monday.
Societe Generale, France's third-largest bank, became the latest major company to stop doing business with Russia as European Union allies and others opposed to Russia's aggression considered additional economic sanctions.
Despite persistent concerns about inflation and a possible global recession, the major cryptocurrency extended its decline on Tuesday.
Recently, Bitcoin dropped below $40K, down 5.4% for the day after touching the highest level above $47K at the end of March.
Ethereum, the second largest cryptocurrency by market capitalization, is trading at nearly $3,000+, down more than 6% since the middle of last month, after dropping below that limit earlier in the day.
optics
• The drop in bitcoin's 50-day moving average, to below $42,000, has investors worried. In the event of a fix below this level, a direct path to the March lows near $38,000 is likely.
• Altcoins such as Terra's LUNA, SOL and ADA tokens also suffered double losses. The meme coins, Dogecoin and Shiba Inu, have also been hit hard. There was little trading.
• Hayes, the former CEO of BitMEX, believes that stock markets could collapse if interest rates rise and the Federal Reserve halts its asset purchases.
• Hayes predicts that crypto markets will continue to decline and that Bitcoin will drop to $30K and Ether to $2.5K by June.
• The Federal Reserve Bank of New York released a study on Monday that revealed that US consumers expect inflation to rise in the near future.
• Food and housing prices are expected to rise significantly in the next 12 months, raising inflation expectations from 6.0% to 6.6%. The 3-year outlook is down from 4.2%.
• According to consumers, rent is expected to increase by 10.2% next year, while food costs will jump by 9.6%.
• Home prices are expected to rise 6%, compared to 5.7% previously.
• Survey respondents expect inflationary pressures will get worse before they get better, which will worry Fed officials.
The Russian invasion of neighboring Ukraine has disrupted supply chains and increased energy costs, which is already raising anxiety among crypto investors.
In an effort to connect Donbass with Crimea on the Black Sea, Russian forces continued to build up in the eastern Donbass region on Monday.
Société Générale, France's third largest bank, became the latest major company to stop doing business with Russia as European Union allies and others who oppose Russian aggression considered additional economic sanctions.
recession
A recession refers to a significant decline in economic activity that lasts for an extended period of time, typically marked by a contraction in gross domestic product (GDP), a decline in employment rates, and a general downturn in various economic indicators. During a recession, businesses may experience reduced profits, layoffs, and decreased consumer spending.
The causes of a recession can vary, but they often involve a combination of factors such as a decrease in consumer confidence, a decline in investments, changes in government policies, or a financial crisis. Recessions can have wide-ranging effects on various sectors of the economy, including manufacturing, retail, finance, and real estate.
Governments and central banks typically respond to recessions by implementing various measures to stimulate economic growth and stabilize the financial system. These measures may include lowering interest rates, implementing fiscal stimulus packages, increasing government spending, or implementing regulatory reforms.
It's important to note that as an AI, I do not have access to real-time data, so I cannot provide specific information about the current state of the economy or whether a recession is occurring at this particular moment. It would be best to consult up-to-date economic sources or news outlets for the most accurate and recent information on the state of the economy