The CoinDesk 20 (CD20) index has dropped by 7% at the start of the Asia trading week, with Bitcoin (BTC) also seeing a 5% decrease. This decline is attributed to uncertainty surrounding interest rates, leading to a bearish sentiment in the market.
Most of the digital assets in the CD20 are in the red, with larger losses compared to Bitcoin. Ether (ETH) is down by 5.8%, Solana (SOL) by 7.8%, and XRP by 7%. Data from CoinGlass indicates that there have been $175 million in long liquidations over the past 24 hours.
Analysts are predicting a potential Federal Reserve rate cut in September due to weaker private sector job growth and rising unemployment rates. ING’s James Knightley highlighted the sluggish job market, with only 136,000 new jobs added in June, falling short of expectations. This has led to speculations of a series of rate cuts by Citi Research, projecting eight cuts starting in September 2024 through July 2025.
Bettors on Polymarket are anticipating 1-2 rate cuts by the end of the year, with a 34% chance of 1 cut and a 37% chance of 2. Despite these dovish Fed expectations, Asian stocks remained subdued as the European Union imposed tariffs on Chinese electric vehicle imports.
In addition, the political landscape in Europe is also posing risks to the market. French voters have favored leftists over the far right, but a potential hung parliament could lead to political and policy paralysis, causing uncertainty in European markets.
It is essential to stay informed about these developments and their potential impact on the cryptocurrency market. As a reputable media outlet, CoinDesk provides unbiased coverage of the industry, adhering to strict editorial policies. Following its acquisition by the Bullish group, CoinDesk operates independently with an editorial committee to safeguard journalistic integrity.
As investors navigate through these uncertain times, monitoring market trends, regulatory changes, and geopolitical events is crucial for making informed decisions in the cryptocurrency space. Stay updated on the latest news and analysis to navigate the ever-changing landscape of digital assets.