The crypto economy has slipped below the $1 trillion mark again after briefly surging to a high of $1.16 trillion on Sept. 14. Signs suggest that the Ethereum merge hype has seemingly left the building and market participants are now awaiting the upcoming Federal Reserve meeting next week. Currently, the crypto economy is down 3% over the past day and is currently valued at $965 billion.
Major stocks, crypto markets, precious metals and real estate continue to fall – 80% of investors anticipate an aggressive Fed rate hike
The merge is over and the hype of moving from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is over. Ethereum (ETH) and the rest of the crypto economy posted decent gains before The Merge, but after the change, the overall crypto market is down more than 3% in the last 24 hours.
Currently, statistics show that the market valuation of all crypto tokens in existence is $965.42 billion. The day before, ahead of The Merge, the crypto economy was valued at $1.16 trillion. While the overall crypto economy slid 3% lower, Bitcoin (BTC) lost 2.6% and Ethereum (ETH) lost more than 7% against the US dollar. At the time of writing, the global 24-hour trading volume is $87.39 billion, and Tether (USDT) has $62.31 billion of today’s volume.
BTC slipped below the $20,000 per unit zone to $19,794 per bitcoin, while Ethereum (ETH) slipped to $1,495 per coin. Amid the crypto economy, Wall Street is suffering and all four major indices are down Thursday afternoon. Precious metals (PMs) like gold lost 1.70% over the past day and silver lost 2.09% against the US dollar. Investors are worried about the Fed’s upcoming rate hike after the US Bureau of Labor Statistics released the August Consumer Price Index (CPI) report.
The Federal Open Market Committee (FOMC) is expected to meet on September 20-21. Data from CME Group shows that 80% of investors expect the Fed to hike interest rates by 75 basis points next week. US jobless claims fell 5k to 213k this week, ahead of market forecasts. The bond market is also unpredictable as government bond yields have skyrocketed across the board. The yield on the two-year government bond rose to 3.85% on Thursday, rising about six basis points (bps).
Meanwhile, not many assets are safe, as reports show the US housing market has taken the “sharpest turn” since the 2008 housing crash. Mortgage rates have risen to over 6% thanks to Federal Reserve rate hikes. A 75 basis point hike to be codified by the Federal Reserve next week will push mortgage and lending rates even higher. It can easily be argued that crypto markets, stocks and precious metals will not react well to next week’s Fed rate hike. All of the FOMC rate hikes over the past few months have put much more pressure on a variety of markets.
What are your thoughts on the current state of the crypto, precious metals and stock markets at the moment? Do you expect the Federal Reserve to hike rates by 75 basis points next week? Do let us know your thoughts on this topic in the comments section below.
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