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Crypto Turns Broadly Lower in U.S. Afternoon Trade as Stocks Give Away Gains

Aug 6, 2024

As a seasoned analyst with over two decades of market experience under my belt, I’ve seen bullish starts turn bearish more times than I care to remember. Today is no exception. The price drop in Bitcoin (BTC) and Ether (ETH) is a stark reminder that even the most promising rallies can be short-lived.

After initially rising on Wednesday, the value of Bitcoin (BTC) subsequently dropped following a decline in U.S. stock prices during the afternoon trading session in the United States. An earlier significant increase in U.S. stocks gave way to a downturn.

As an analyst, I’m reporting that at the current moment, Bitcoin (BTC) is trading at approximately $54,800, representing a nearly 4% decrease from its price 24 hours ago and a more significant drop of over 6% from the $57,600 mark reached a few hours prior. On the other hand, Ether (ETH) is experiencing a more pronounced decline, currently standing at $2,322 – a drop of about 7.1% in the last day. This downward trend has also pushed the ETH/BTC ratio to its lowest point in over three years. The overall CoinDesk 20 Index is experiencing a decrease of 2.5%.

On Wednesday, trading began positively as Bank of Japan Deputy Governor Shinichi Uchida indicated that the central bank would not raise interest rates when markets are turbulent. This accommodative stance caused the yen to depreciate and both the Japanese stock market and U.S. index futures to rise significantly at first. The Nikkei ended the day with a 1.2% increase, and U.S. stocks started with gains of approximately 1.5%, but the optimism waned as the day progressed.

Roughly ninety minutes before the close of trade, the Nasdaq is down 0.8% and the S&P 500 off 0.6%.

In a conversation with CNBC on Wednesday, JPMorgan’s CEO expressed doubts about the U.S. Federal Reserve’s ability to achieve its 2% inflation target. His concerns revolve around issues like budget deficits, military spending increases (referred to as “remilitarization”), and transitioning to a green economy. Regarding an anticipated Fed interest rate cut, Dimon suggests it will likely occur, but he’s not optimistic that it will have a significant impact.

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2024-08-07 21:54