Experts warn that the ongoing "bloodbath" will only result in more selling pressure on stocks, as the market fell victim to a massive selloff on Monday, with several large exchanges either stopping sales or announcing layoffs.
It's another sign of how bad investor sentiment is.
After Celsius suspended withdrawals due to extreme market conditions, the price of the virtual currency plummeted to its lowest level in over a year.
In the midst of the selloff, Blockfi announced it was laying off 20% of its workforce due to the challenging market environment.
As investors flee to safer bets amid a backdrop of rising rates and recession fears, the collapse of thecryptocurrencies on Monday is another sign of the risk-averse sentiment in markets.
The recent plunge in prices of the cryptocurrencies can only mean more bad news for the stock market, according to the chief market technician at the firm.
He says a continued selloff would be a "bearish read through for stocks."
It has been a rough few days for traders in the space of a few days.
The Vital Knowledge founder says that the Celsius news isn't a cause. The lack of real-world utility makes it hard to try and call a bottom.
While experts are not able to predict a bottom for the price ofCryptocurrencies, they are trying to form a base. The situation could get even worse if the price falls.
The S&P 500 fell into bear market territory on Monday as investors shied away from riskier assets due to rising interest rates and high inflation. The Federal Reserve is expected to raise rates by a small amount at its meeting on Wednesday. A hotter-than- expected inflation reading in May has added uncertainty about whether the Federal Reserve will be more aggressive than expected in raising rates The central bank will have to raise rates by 0.05% at the upcoming meeting according to several major Wall Street firms.
The S&P 500 has entered a bear market.
The market drops below $1 trillion.
The stock market plunged after the Inflation Report Fueled Fears of Impending Recession.
What happens to the market during an economic downturn? You may be surprised by the news.
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