Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
PODÍL
Bitcoin investors have been relentlessly punished this week. In one of the worst periods in recent years, the original cryptocurrency has already shed $10,000 since Monday, dragging prices back into the $62,000 range earlier this morning. Everything came together in the worst possible way this week, as $4 billion worth of liquidations met with unprecedented ETF outflows, not to mention Strategy’s first sale of Bitcoin since 2022. The selling pressure has been ruthless across the board, pushing many cryptocurrencies to lows not seen in months and in some cases, years. Ethereum tumbled from $2,000 on Monday down to just $1,700 in the latter half of this week, revisiting prices last seen in April of last year. XRP is perilously close to matching prices from November 2024; Solana has surrendered all gains since December 2023; Ada has fallen below 20 cents, representing a five and a half year low for Cardano and prompting founder Charles Hoskinson to take a step back from public appearances. The list goes on.
While the euphoria in semiconductors and artificial intelligence continues to push tech stocks to fresh highs seemingly every week, sentiment in the thoroughly decoupled crypto sphere remains in the gutter. All the money funnelled into the NYSE and Nasdaq over the past years completely bypassed cryptocurrencies, with devastating consequences. There are now five or six companies that boast higher market capitalisations than the entire crypto ecosystem put together; Nvidia (NVDA) alone has more than double.
The big question facing digital assets is whether or not the Clarity Act can pass before the scheduled Congress recess in August. Treasury Secretary Scott Bessent and SEC Chairman Paul Atkins have both expressed a level of confidence that the bill will pass this summer, while a number of other officials have floated the 4th of July as a potential target date. With that said, banks are still not happy about the new legislation and the path to signing the act into law is by no means an easy one.
Crypto bloodbath aside, there is very little of note going on this week. Shares in Broadcom (AVGO) plummeted 12% on Thursday after releasing disappointing sales forecasts the day prior, although despite the selloff the stock is still trading for the same price as it was last week. In the current climate, expectations are sky-high for the major tech companies; anything short of massively beating expectations is now considered a loss. A reminder that the latest non-farm payrolls report is set to be published in the coming hours, possibly impacting market volatility later today.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
Reviewed by RADEX MARKETS
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