Crypto Market Loses ground as Macro Headlines Hold Tight | Crypto

Crypto Market Loses ground as Macro Headlines Hold Tight

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1. The macro market has been influencing the price of crypto to a much larger degree in the last couple of months compared to a year ago.

2. This is no surprise given that some of these companies, which are heavily involved in the macro market, also extended their investments to cryptocurrencies such as Bitcoin.

3. Hence, when the macro environment affected these companies, crypto was affected.

4. Even now, the influence continues to maintain hold.

5. Over the last week, there have been some major happenings in regard to the economy.

6. Fed Chair Jeremy Powell said that as the government tried to get the inflation rate under control, there would be a lot of pain coming to the market.

7. The market had taken such grim forecasts and ran with them, triggering massive losses across the stock market.

8. By the end of Sunday, the stock market had recorded $1.25 trillion in losses.

9. The spillover from the losses was quickly felt in the crypto market.

10. Crypto make losses had come to about $100 billion total in the same time period, dragging it down below the $1 trillion mark once more.

11. Total market cap below $950 billion | Source: Crypto Total Market Cap on TradingView.com

12. The crypto total market cap has now recovered to $931 billion at the time of this writing, after hitting a local low of $919 billion in the early hours of Monday.

13. There has been a small recovery in the crypto market over the last few hours, but with the trading week opening up, there is still uncertainty regarding which way the market will swing.

14. Powells speech had come just ahead of the weekend, not giving the stock market enough time to absorb and regulate the news.

15. This regulation is expected to happen this week.

16. As for the expected increase in interest rates, like before, it is likely to trigger another downtrend as investors pull out money from the market.

17. This trend is already being seen in the crypto market, where large investors have been pulling out of digital assets such as Bitcoin, leading to double-digit outflows.

18. September has also been a historically red month for the crypto market.

19. So if the market stays true to this trend, then there are likely more losses to come as September rolls around.

macro and crypto Crypto Market Loses ground as Macro Headlines Hold Tight

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