Crypto Market Faces Decline Amid Economic Uncertainty

John Darbie
Photo: Finoracle.net

Bitcoin and Ethereum Fall Again

At press time, Bitcoin (BTC) and Ethereum (ETH) have seen price drops of 3.8% and 6%, respectively, in the last 24 hours. The bullish rally in the cryptocurrency and other markets was driven by Shinichi Uchida, the Deputy Governor of the Bank of Japan, who stated that the bank won’t increase the interest rate. This comment from the Deputy Governor not only created stability in the market but also supported both Japanese stocks and the U.S. stock market.

Potential Reasons for the Cryptocurrency Decline

However, this optimism in the market was only for a short period. After a gap-up opening, the U.S. Nasdaq and S&P 500 declined, with both currently down by 0.97% and 0.78%, respectively. Meanwhile, Dow Jones is down by 0.6%. At press time, all these indexes are moving toward the previous day’s lows. This immediate fall in the U.S. stock market has caused a massive decline in the cryptocurrency market.

Signs of Recession

Amid this downturn, former president of the Federal Bank of New York, Bill Dudley, stated that the Fed needs to cut the interest rates significantly and soon. Dudley believes the rising of unemployment, as it reached 4.13%, indicates a recession may be on its way. Additionally, he suggested that to neutralize the interest rates, the Fed would need to cut rates by at least 150 basis points and potentially another 100 basis points for economic support. Conversely, JPMorgan CEO Jamie Dimon, speaking with CNBC, said that the Fed interest rate cut won’t have much impact on the market.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.