The crypto recovery weakens despite the brief surge in prices over the weekend as the US economy gains more strength and favor among investors so let’s have a look in our latest cryptocurrency news today.
The Crypto recovery weakens and it stalled over the weekend thanks to the bounce of the US Economy which is causing a huge shift from growth assets to value ones and the USD increasing value is also seen as a negative sign for BTC but the value projects like ETH will become immune in time. It was a mixed weekend for the crypto markets and the news of Biden’s $1.9 trillion stimulus bill that is passing the Senate helped boost the prices on the board. However, as Monday came, the new wave of treasury yields happened and it caused some concerns for the crypto market.
The total market cap numbers were declining to lows of $1.4 trillion and now with the stimulus package bill getting passed in its final hurdle, the global markets hit $1.6 trillion. Bitcoin’s price was trading around $48K and then hit $50K in less than a day but at the time of writing, its price has dropped again below $50K. Investors are turning their backs on the US economy in search of value stocks and they are expected to bounce back in the coming months which means that the stocks will grow and their prices are viewed as having no room for growth.
Another thing that can happen for the markets is an uptick in the value of the US dollar as BTC gained against the greenback because of the FED buyback policy and increased its national debt which led to weakening the dollar when compared to the basket of other currencies. However, with the rising treasury yields and the improving economic outlook, there’s some strong bullish trend in buyers of the US dollars. The investors see that there is more money now to be made in the US economy as it gets back on its feet.
The shift in market sentiment from growth to value comes as a shock for projects that have built products and services with more value backed into their blockchains while Polkadot, Cardano, and Ethereum are diverging from Bitcoin’s performance as their ecosystems started maturing.
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