According to CoinMarketCap real-time performance data, global crypto market The cap fell 15.28% on the previous day to $944.92 billion. However, in terms of volume, the market jumped 73.92% to $147.17 billion in the last 24 hours. The total volume of DeFi currently stands at $10.17 billion, which is 6.91% of the total crypto market 24-hour volume. The volume of all stablecoins is now $133.44 billion, which is 90.67% of the total 24-hour volume of the crypto market.
crypto market leader Bitcoin It hit its lowest level in 18 months and erased the $23,000 mark. Bitcoin is currently down more than 18% at around $22,826.09. Its market cap was around $436.70 billion. The dominance of the cryptocurrency fell by 1.07% during the day to 46.30%. With the latest downside, Bitcoin has seen a weekly drop of over 27%.
The Ethereum equivalent of bitcoin is down more than 21% and was trading around $1,196.43. The market cap of Ether stood at around $143.76 billion.
Talking about the performance of the crypto market, Rajagopal Menon, Vice President, WazirX, said, “The crypto markets have seen a correction due to weak global cues. Internationally, the stock and crypto markets have become highly correlated.”
Menon continued, “Inflation globally has also been a major concern for investors. In the US, it is at a 40-year high of 8.6% and in the UK at 9%; interest rates across major crypto nations This is also a growing concern as they reduce liquidity. Both indicators have led to a massive selloff,” adding, “In India, the central bank has revised its full-year forecast for the FY23 consumer price index.” increased to 6.7%, which is higher than the target, and the Indian rupee has hit a record low of 78.28.”
On Monday, Wall Street extended its losses with the S&P 500 falling more than 20% from its record as fears of a potential recession intensify as inflation worsens to multi-decade highs. At 11:19 a.m. GMT-4, the S&P 500 index fell more than 3.3%, while its counterparts the Dow Jones Industrial Average fell nearly 2.4% and the Nasdaq index fell nearly 4%.
According to a Bloomberg report, the S&P 500 was down 21.3% from its record set earlier this year. If it ends the day more than 20% above that high, it will enter what investors call a bear market.
On the Asian front, South Korea’s KOSPI was the most affected, falling over 3.5%, while Hong Kong’s Hang Seng and Japan’s Nikkei 225 fell over 3%. Australia’s S&P/ASX slipped 1.25%. While the Sensex fell by 2.68% and the Nifty 50 by 2.64%. China’s Shanghai Composite closed down 0.89%. Markets here were also buoyed by concerns about the COVID-19 situation in China as authorities now expect to resume strict, business-slowing restrictions.
In European markets, Germany’s DAX and French CAC 40 fell more than 2.7% each. The FTSE 100 in London dropped 1.4%.
Why are the stock markets in the dark red?
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Inflation scare has weakened global markets. It is important to appreciate the fact that global markets are highly integrated. The mother market, the US, sets the trend and Others follow. US markets are weak on worse-than-expected inflation (8.6% versus 8.3% in May) and markets expect aggressive monetary tightening by the Fed. This is counterproductive to riskier assets like equities. In the US Increase in dollar and bond yields will force more selling by FPIs in India.”
“This market turmoil is an opportunity for investors to buy stocks that have been beaten by FPI sales but are improving infrastructure,” Vijayakumar said.
Vinod Nair, Head of Research, Geojit Financial Services, further said, “We will continue to trade with higher volatility, however medium to long term risk takers should initiate chip-in to the market as it may be in its final stages. of consolidation.”
Pankaj Pandey, Head of Research, ICICIDirect, said, “On the equity market outlook, while we believe volatility may persist in the near term, the recent trough is allowing long-term investors to load up on quality companies with sustainable growth visibility. In the medium term, we remain constructive on domestic consumption, capital goods and allied space and domestic manufacturing plays.”
Will the bearish tone of the cryptocurrency fade away in the near term?
“Investors have taken a wait-and-watch approach as early indicators are in the red. We expect this bearish market to continue in the near term,” said WazirX Vice President.