Markets
CoinDesk 20 Down 7%, Bitcoin Sinks 5% to Start Asia Trading Week
THE CoinDesk 20 (CD20)a measure of major digital assets, began the trading week in Asia down 7%, while bitcoin fell 5% on rising expectations of a Fed rate cut in September.
Nearly all CD20 components are in the red, seeing losses greater than bitcoin. Ether (ETH) is down 5.8%, Solana (SOL) is down 7.8%, and XRP is down 7%. CoinGlass Data shows that in the last 24 hours, there have been $175 million in long-term liquidations.
ING’s James Knightley wrote that private sector job growth was particularly weak, with just 136,000 new jobs added in June, below the 160,000 forecast. Government, education and health services contributed nearly 60% of the new jobs, while retail, temporary care, professional business services and manufacturing all saw job losses.
Citi Research is making a more aggressive forecast, writing in a recent note which includes eight rate cuts by the Federal Reserve starting in September 2024 and ending in July 2025, lowering the benchmark rate by 200 basis points to 3.25%-3.5%.
Polymarket bettors are betting that the Fed will make 1-2 rate cuts by the end of the year, with a 34% chance of 1 cut and a 37% chance of 2.
The Fed’s so-called dovish expectations failed to lift Asian stocks, as the European Union’s decision to impose steep tariffs on Chinese electric vehicle imports soured sentiment. Elsewhere, French voters gave leftists more seats than the far right, but failed to secure a majority, leaving a potentially parliament deadlockeda recipe for political and strategic paralysis and potential risk aversion in European markets.