The crypto economy slipped below the $1 trillion range again after briefly hitting a high of $1.16 trillion on September 14. . Currently, the crypto economy is down 3% in the past day and is currently valued at $965 billion.
Major stocks, crypto markets, precious metals and real estate fall further – 80% of investors expect aggressive rate hike from Fed
The merge is complete and the hype leading to the transition from proof-of-work (PoW) to proof-of-stake (PoS) has now died down. Ethereum (ETH) and the rest of the crypto economy saw decent gains before The Merge, but after the change, the entire crypto market is down over 3% in the last 24 hours.
Currently, statistics show that the market value of all existing crypto tokens is $965.42 billion. The day before, before Fusion, the crypto-economy was valued at $1.16 trillion. While the entire crypto economy fell 3%, bitcoin (BTC) lost 2.6% and ethereum (ETH) lost more than 7% against the US dollar. As of this writing, there is $87.39 billion in global 24-hour trade volume and tether (USDT) commands $62.31 billion of current volume.
BTC slipped below the $20,000 per unit zone at $19,794 per bitcoin, while Ethereum (ETH) slid to $1,495 per piece. Amid the crypto-economy rout, Wall Street is hurting and all four major indexes are down on Thursday afternoon. Precious metals (PM) like gold lost 1.70% over the past day and silver fell 2.09% against the US dollar. Investors worried about upcoming US Federal Reserve rate hike following US Bureau of Labor Statistics release for August consumer price index (CPI) report.
The Federal Open Market Committee (FOMC) is scheduled to meet on September 20-21. Data of the CME Group indicates that 80% of investors expect the Fed to hike the rate by 75 basis points next week. Unemployment claims in the United States fell by 5,000 to 213,000 this week, which was higher than market forecasts. The bond market is also erratic, with Treasury yields jumping across the board. The yield on two-year Treasury bills hit 3.85%, rising about six basis points (bps) on Thursday.
Meanwhile, few assets are safe as reports show the U.S. housing market has taken the “sharpest turnsince the housing crash of 2008. Mortgage rates, thanks to rate hikes by the US central bank, have topped 6%. A 75 basis point hike codified by the Federal Reserve next week will push mortgage and lending rates even higher. It can easily be argued that the crypto markets, stocks, and precious metals will not react well to next week’s Fed hike. All of the FOMC rate hikes in recent months have put much more pressure on a myriad of markets.
What are your thoughts on the current state of the crypto, precious metals, and equity markets right now? Do you expect the Federal Reserve to raise rates by 75 basis points next week? Let us know your thoughts on this in the comments section below.
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