Storm clouds gathered over the crypto markets towards the end of last week, as rumors started to circulate about a global recession on the back of worrying inflation levels coming from the United States. While the full impact of these announcements wasn’t quite felt throughout the whole week, the tone was certainly set for what was to arrive very soon. With that said, markets tended to trade steadily for the most part of the midweek period, as short term holders found opportunities in some cryptocurrencies to make a quick buck. From thereon in, it’s been a seller’s market — and it looks like it will continue to be for a bit longer than hoped.
Heading into the beginning of June 6th, markets had a great first touch in the game and made gains on their closing week positions. Ethereum was heading towards $2k, Bitcoin glided into $30k+ territory, and there were positive trajectories to be found across multiple cryptocurrencies. Some saw this last, on the whole, for the majority of the week, whereas others saw more of a bounce in values and a little extra volatility. One thing that united almost all markets, however, was a dip towards the end of the week that would only harshen as the new week arrived.
Between Monday and Wednesday, Bitcoin ranged between $31.5k and the low end of $29k. Monday and Wednesday were the positive days for BTC, whereas Tuesday was the day of the dip that it swiftly bounced back from. Volatility aside, the world’s most popular cryptocurrency traded pretty consistently around the $30k mark from mid-Wednesday to Friday afternoon, which was no doubt a source of light relief for investors. Short term traders had plenty of opportunity to take advantage of this, with the potential to gain over $1.5k between Tuesday morning and the beginning of Wednesday as a result of a short price rally. Markets turned bearish on Friday afternoon however, and the crypto slump started — Bitcoin would end the week trading close to $27k, at its lowest position since December 2020.
Ethereum followed the same trajectory also, beginning the week on the right note, experiencing a small dip, and then levelling out to trade steadily and consistently until Friday. By the time the week closed, ETH was also breaking its own unwanted records, trading at its lowest position since March 2021. This was, unfortunately, the tale of the market come the end of the week, as outlooks turned gloomy and word spread of a far from positive outlook in the United States.
Markets took a huge turn on Friday afternoon, as stocks in the US tumbled on the back of further inflation concerns. Major stocks were down, and continue to fall, as crypto took its lead from this. Inflation in the United States is currently at a 40-year high, at close to 8.6%. Between Friday afternoon and Sunday night, Cardano was down 12%, XRP down 8%, Avalanche down 22% and Polkadot 12%. Across the board, crypto investments are suffering some of the toughest moments of their lifespan, and stock experts are predicting a global recession that will undoubtedly continue to damage valuations.
While of course markets move in cycles, there is an undoubtedly noticeable fear index that’s gripping the crypto market. While this week’s Crypto Wrapped was able to report at least some positive news, it is predicted at this moment in time that the same can’t be said for next week. The bear has a full grip on both crypto and stocks, and there’s no short term sign of him going anywhere soon.
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