The cryptocurrency market is experiencing a noteworthy correction, with Bitcoin’s (BTC) price plodding back towards the $26,000 threshold. This retreat wipes out virtually all of the ground gained yesterday, echoing a similar retreat in traditional markets. Meanwhile, the second largest cryptocurrency, Ether (ETH), mirrors this downturn with a roughly 3% slide from yesterday’s peak. Both assets seem stuck in what CoinDesk Indices’ trend indicators describe as a ‘significant downtrend,’ following the sudden drop in digital asset prices last week.
This slowing of the disruption in financial markets is reflected in the equity space as well. The Nasdaq Composite leads the downward march with a 1.3% drop, with the S&P 500 trailing at a reduced pace with a decline of 0.8%. Noteworthy individual entities such as Nvidia (NVIDIA), a favorite in the realm of chipmaking and Artificial Intelligence, saw their post-earnings gains from the previous night nearly wiped out, clinging on to a mere 1% rise for its recent session.
Simultaneously, market observers keenly anticipate Federal Reserve Chair Jerome Powell’s upcoming public address at the forthcoming Kansas City Federal Reserve’s annual Jackson Hole Symposium. However, those seeking signs of an imminent end to the rate hiking cycle may find disappointment, according to John Glover, the chief investment officer of digital asset lender Ledn. Glover highlights a compelling underlying dynamic, explaining that the economy continues to absorb central bank measures in the past 16 months with little visible harm to consumer and industrial spending or job creation. Yet there are signs—subtle but disconcerting—that households and businesses are starting to weather the increased financial burden.
Against this backdrop, U.S. initial jobless claims seem undeterred and remain healthy. They dipped to 230,000 last week, down from 240,000 the previous week, and stayed lower than economist estimates of 240,000. The job market, it seems, hangs on with remarkable tenacity amidst the storm.
Furthermore, according to GDPNow model from Atlanta Fed, the economy speedometer is predicting skyrocket numbers with a 5.9% growth in Q3. This surges ahead of its prediction of 5.8% from the previous week, and the 4% prediction in early August, leaving us all to wonder, what is actually going on?
Source: Coindesk
