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Crypto’s Downward Trend, U.S. Indices Hit a Sharp Drop, The Dollar’s Strength & Rivian Stock Drops 20%

Bitcoin bloodbath

The downward trend for BTC and other Cryptocurrencies continued as Bitcoin fell by over 10% to start the week. In late afternoon trading the bellwether cryptocurrency was down over $3,800 to $30,815 after crashing through support at $31,000.

💡 More on this
According to the Crypto Fear & Greed Index, the more significant sentiment among crypto investors for the most part of this year has been ‘fear’ and ‘extreme fear.’ Notably, bitcoin inflows from private wallets accounted for 40% of total inflows across exchanges. Higher exchange inflows are indicative of a rise in selling pressure.

The selling was across the board as other Crypto assets suffered even worse declines with Ethereum off 11.2%, XRP down 13.2% and Litecoin falling 15.75%.

The crypto market is proving to be highly correlated with equities and trending down with technology stocks in general as the market sells risky assets. BTC is down close to 55% from its November peak of nearly $69,000, with an estimated 40% of holders now facing cash loses on their positions.

S&P 500 falls to 1-year low, as NASDAQ slips to lowest level in 14-month

Several U.S. indices fell to significant lows to start the week, as traders continued to react to the growing inflationary pressures in the United States.

Despite last week’s interest rate hike by the Federal Reserve, markets have continued to trade in the red, as analysts continue to forecast a recession.

This comes despite data from the Commerce Department today showing that wholesale inventories had risen by 2.3% in March.

💡 Should we panic?
As prices continue to surge across the globe, and China’s economy stalls many people begin to worry about the predictions made by analysts across the globe as to what the outcomes of a recession could be.

The reality is is that many analysts fail to predict the future, let alone the severity. While being informed and prepared is important you should avoid panicking. Some of the best and simplest tips experts give, include securing your job and having an emergency fund available, as well as tracking your expenses to see where you could cut back should you need it.

February’s figure was also revised higher to show 2.8% instead of the previously stated 2.6%.

These figures follow on from Friday’s payroll, which came in close to market expectations, and confirm continuing growth in the labour market.

Irrespective of all of this, markets continue to feel strained with concerns surrounding rising consumer prices and inflationary pressure.

USDJPY climbs to a fresh 20-year high

USDJPY rose to a fresh 20-year high on Monday, as traders flocked to the safe haven currency.

Following last week’s decision by the Federal Reserve to hike rates by 0.5%, which was the biggest hike in two decades, currency markets have continued to react.

The Yen has reacted the most against the Dollar, as the Bank of Japan has opted not to make any policy changes.

In addition to USDJPY, EURUSD has also recently moved, and started the week by falling to a five year low of 1.0482.

The cable rate also shifted on Monday, with GBPUSD hitting a two year bottom earlier in the session.

Rivian stock down 20%, as early backers flee

Shares in electric vehicle maker Rivian was down on Monday, as it was reported that several early investors had scaled back their backing.

Ford, which currently holds 102 million shares of Rivian, is reportedly looking to offload close to 10% of its holdings.

Indications are that the company plans to conduct the sale via Goldman Sachs, a move which comes as a post-IPO lockup is due to end this Sunday.

The lockup meant that investors would be unable to sell shares for a set period of time following the company’s public listing.

As of writing this, Rivian stock is down 19.17%.

 “I’m only rich because I know when I’m wrong. I basically have survived by recognizing my mistakes.”

George Soros

Eliman Dambell

Senior Market Analyst