Crypto Market Sinks Fast, Economists Debate Consequences

Crypto Market Sinks Fast, Economists Debate Consequences
  • Both Cryptocurrencies and stocks take a massive plunge. 
  • The overall market sentiment seems to be shrouded in fear and doubt. 
  • Economists expect a harsh state of inflation and an inevitable recession.

In just 24 hours, the financial market took a heavy hit and assets everywhere are dropping in value. The market sentiment is moving towards a downward spiral as investors scramble to secure their investments. 

What’s concerning is that the hit is affecting both traditional and decentralized economies. This is unfortunate news, especially for the crypto industry that needs a greedy sentiment to drive price surges. Presently, the Crypto Greed and Fear Index is at 28 indicating fear. 

In particular, figureheads in the crypto industry are keeping a close eye on the charts and educating the crypto community. For Instance, long time trader and investor of Bitcoin and other cryptocurrencies — Lark Davis, posted multiple tweets. 

One of these tweets highlighted how stocks lost $1.2 trillion on Friday. To elaborate, this means that stocks lost more than the whole market cap of crypto. Meanwhile, within the crypto market, $70.63 billion was wiped out from the global crypto market cap in just 24 hours. 

To highlight, a tweet listed out some of the major crypto and stock assets that dropped:

According to CoinGecko, all major cryptos are showing red downward signals. These include Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and almost every other crypto. It seems the crypto winter recovery was a short one, perhaps something even deadlier may be approaching. 

Lark Davis points an accusatory finger at Jerome Powell for possibly triggering this financial dip. He says that Powell erased more than a trillion dollars for crypto and stocks both with one short speech. Lastly, economists are expecting high inflation and quite possibly a recession on the horizon.

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A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.