Cryptocurrency markets faced a setback this weekend, with liquidations surpassing $500 million as major coins like Bitcoin, Ethereum, and XRP saw notable declines. This market downturn coincided with broader concerns over high inflation data and its impact on risk assets like cryptocurrencies and stocks.
Bitcoin’s Decline: A Drop Below $109K
Bitcoin, the leading cryptocurrency, tumbled below the $109,000 mark, reaching its lowest levels since early July. According to CoinGecko, Bitcoin’s value decreased approximately 4% in the last 24 hours, marking an 8% decline over the past month. Earlier this month, Bitcoin hit an all-time high of $124,128 but has since declined by 12%.
Ethereum’s Slump After Hitting Record Highs
Ethereum followed a similar trajectory, dropping 6% in the past 24 hours to trade near $4,295. This comes just a week after Ethereum hit a record high of $4,946. As of now, the second-largest cryptocurrency is down about 13% from its peak, erasing its gains from recent weeks. The decline in Ethereum prices has contributed significantly to the $446 million in liquidated long positions permeating the crypto market.
Other Major Cryptocurrencies Feel the Pressure
It’s not just Bitcoin and Ethereum taking a hit. XRP, the third-largest cryptocurrency by market cap, declined by 6%, trading at $2.84. Solana, another popular cryptocurrency, dipped by 3% to $209 after reaching a six-month high above $217 just a day earlier.
Impact of Inflation on Crypto and Stocks
This drop in cryptocurrency prices aligns with broader market trends as traders reacted to the latest inflation data. The Personal Consumption Expenditures (PCE) price index revealed core inflation at 2.9% in July, slightly higher than June figures. Consequently, major stock indices like the S&P 500 and Nasdaq also experienced declines, further reinforcing the correlation between cryptocurrencies and equities.
September: A Historically Volatile Month
September has historically been turbulent for both Bitcoin and traditional markets. Analysts warn that this pattern could persist, leading to additional sell-offs in the month ahead. Despite these challenges, some market participants remain optimistic. Data from Myriad Markets suggests a 75% probability that Ethereum could recover and surpass $5,000 by year-end, reflecting ongoing confidence from segments of the crypto community.
A Product to Watch: Nano Ledger X
Amid such volatility, securely storing your crypto assets becomes even more critical. The Ledger Nano X, a Bluetooth-enabled hardware wallet, offers top-notch security for your Bitcoin, Ethereum, and other cryptocurrencies. Portable and easy to use, it ensures peace of mind as you navigate the unpredictable world of crypto trading.
