After a spectacular bull run this week, it’s like all good things are about to end as Bitcoin and Ethereum prices are down over 6% in the last 24 hours. The global cryptocurrency market is dangerously close to falling below the $1 trillion market cap again, with a current valuation of $1.02 trillion, down 4.76% over the past 24 hours.
Bitcoin price fluctuates amid Tesla’s Q2 earnings report, uncertainty hits markets
One reason for the abrupt market reversal today is Tesla’s Q2 earnings report, which shows that the company sold over 75% of its Bitcoin holdings, worth over $300 million.
After investing over $1 billion in cryptocurrency last year and claiming the company sees long-term potential for Bitcoin, their sentiment towards the cryptocurrency markets has changed since the seven-month bear market depreciated their portfolio.
While Tesla hit its expected second-quarter revenue of $16.9 billion, its stock was up just under 1% this Thursday.
Given the current state of global markets, companies are unlikely to be rewarded for merely meeting investor expectations for their most recent quarter’s earnings. Additionally, companies that manage to beat sales expectations are unlikely to see their shares rise significantly as inflation rises and stock market uncertainty increases.
With the Fed planning to hike rates another 75 basis points in a matter of weeks, most traders are on the sidelines waiting for a market correction once rates rise.
Last but not least, the real estate market is also showing a clear slowdown, with most houses remaining on the market for more than 30 days. More and more properties are having to lower their prices in order to search more and more desperately for an offer.
Ethereum price is struggling to hold above $1,500 as EthCC closes
Ethereum is trading in the $1,480 area and is falling steadily hourly, struggling to hold current support as trading volume decreases.
Hype around the “merge trade” that saw investors rush to buy the cryptocurrency during the brief bull market and news of an upcoming proof-of-work to proof-of-stake network switch in September are fading, causing a correction for ETH.
It is surprising to see Ethereum’s price falter so much as Vitalik Buterin, the founder of ETH, took the stage at EthCC today and spoke at length about the network’s merger. Vitalik mentioned how Ethereum could process up to 100,000 transactions per second, a significant improvement over the network’s current maximum TPS of 108 and average TPS of 54.
The good news is that the long-term sentiment for the crypto markets remains bullish and there are plenty of opportunities to make money from crypto and dApps besides buying a digital asset and hoping its price will continue to rise. Whether participating in play-to-earn or move-to-earn projects, providing liquidity and passive yield farming, or utilizing a lending protocol, the possibilities are endless.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in services.
Disclosure: This is not trading or investment advice. Always do your research before buying any digital currency or investing in any project.
Follow us on Twitter @thevrsoldier to keep up with the latest Metaverse, NFT, AI, cybersecurity, supercomputers and cryptocurrency news!
Image source: winst2014/123RF
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.