Crypto and related assets slumped alongside traditional markets.
Bitcoin slid 1% below the $17,000 mark to $16,845 at 10:15 a.m. EST, according to data via TradingView. Ether slipped 1.4% in the past day, down to $1,235.
Altcoins were down with Dogecoin dropping the most at 3.2%. Binance’s BNB fell 1.3%, Polkadot’s DOT slipped 2.5% and Polygon’s MATIC was down 1.9%.
Crypto stocks and structured products
The S&P 500 was marginally lower, falling by 0.03%. Meanwhile, the Nasdaq 100 dropped more sharply, shedding 0.4%, by 10:15 a.m. EST. Stocks remain under pressure over fears of more restrictive Fed policy on the bank of positive economic data.
Ark Invest’s Cathie Wood said the bond market may signal that the Fed is making a “serious mistake” as U.S. Treasury yields rose.
“At -80 basis points (as measured by the 10-year vs. 2-year Treasury yields), the yield curve is more inverted now than at any time since the early ’80s when double-digit inflation was entrenched,” the CEO said.
An inverted yield curve is typically a precursor of a recession or lower-than-expected inflation. “In our view, deflation is a much bigger risk than inflation,” Wood said, noting that commodity prices and massive retail discounts corroborate that point of view.
Bitcoin’s correlation to equities appears to have arrested its decline, according to The Block’s data. However, it remains at yearly lows of -0.7 to the S&P 500 and -0.53 to the Nasdaq 100.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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