Bitcoin, Ethereum, and other cryptocurrencies saw their collective values plunge by a combined $367 billion on a 24-hour period.
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
The Wall Street recalibration extends into a new week. In a very rare feat, the Dow dropped over 1,000 points right at Monday’s open. Investors fear a recession is right around the corner as slowdowns in hiring and in manufacturing activity extend into another month.
New data from the services sector is mitigating some of that fear. The Institute for Supply Management’s non-manufacturing index for July came in at a better-than-expected 51.4, which means the massive services sector returned to growth last month.
In related news, Crypto has not been immune from a swift downward shift in investor psychology. $367 billion in crypto market value has been wiped out in just 24 hours. Half-a-trillion dollars disappeared over the past three days.
The sell-off has been most pronounced for bitcoin. The digital currency has slid from $70,000 to $50,000 in just a matter of days. Bitcoin has shed over one-third of its value since hitting a record high in March, though it is still up for the year. Ether, on the other hand, has seen all of its gains evaporate for 2024.
Losses in the crypto market may have caught investors off guard. Since its inception, crypto has been billed as a so-called safe haven – a place to hide during times of market uncertainty and upheaval. That, however, has not been the case. Making matters possibly worse, hundreds of million of dollars have recently been invested in crypto by way of new bitcoin and ether ETFs, creating the landscape for the possibility for even more selling to come.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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