Market Wrap: Bitcoin, ETH increase after completing the worst month

Market Wrap: Bitcoin, ETH increase after completing the worst month

After a relatively flat holiday weekend in the United States, the top cryptocurrencies recovered on Tuesday, if only easily.

Bitcoin (BTC) climbed to over $ 20,300 until the early morning - after it had asserted it by fluctuating between the relatively narrow range of $ 19,000 to $ 20,000 since it was moved into July. BTC continued its climb and has increased by 4.3 % at around $ 20,600 at 4:10 p.m. ET in the last 24 hours. Ethereum (ETH) rose by about 3.7 % to $ 1,160.

At the end of the second quarter last Thursday, the decline in the cryptom market in June was the worst month since its publication on the stock exchanges in 2010. The value of BTC this month fell by more than 38 % and the market capitalization of ETH by 47 %, CNBC registered . The decline was followed by Luna's collapse in May and the crisis of the crypto loan platform Celsius, which led to a broad sale in the room.

Traditional markets also had a hard time. The six months to last Thursday were the worst first half of the year for the US stock market.

inflation concerns continued to have pressure on the benchmark Dow, which closed on Tuesday with 0.42 % in the minus. However, the wider S&P 500 index closed by 0.16 % higher, and the technology-based NASDAQ increased by 1.75 %, whereby the shares of the video game software development company Unity software were 12.9 % higher.

The oil prices then dropped significantly West-Texas-Mittelstufe Rohöl-Futures fell under $ 100 per barrel on Tuesday morning. Based on reports from the G7 summit, which took place in Germany last week, some civil servants Thinking To enable the price limit could be used as a lever to prevent price jumps.

Since great cryptos such as Bitcoin have become more mature global macroeconomic assets, this also indicated a higher correlation with wider stock markets, Tom Dunleavy, Senior Research Analyst at Messari, told Blockworks.

"The continued monetary policy tightening, coupled with no direct sign of an atlation front, harms all risk systems. Krypto is still acting like a asset with high beta risk," said Dunleavy.

In the course of the climb of the Omicron variant of Covid-19, the economy was hit this year by the energy crisis to Russia's invasion in Ukraine. The gas and food prices have increased significantly and inflation has reached a 40-year high. Now the investors are looking for a further possible rate increase of the US Federal Reserve, of which many fear that it could plunge the US economy into a recession.

Craig Erlam, Senior Market Analyst at Oanda, wrote in a note from the last Thursday that the US economy wrote One of the best to "ward off a recession, but it is not completely immune to the crisis of living costs. It may be catching up."