08/06/2024 | Press release | Distributed by Public on 08/06/2024 10:17
Yesterday, the cryptoasset market was down by 17%, and Ethereum has had its worst trading day since 2021. Following the turbulent hours of the first trading day of the week, our research team broke down some of the primary factors driving markets; you can have a look here.
This morning, we saw some signs of recovery after yesterday's sharp market drop. Here's what happened where we left off on Monday:
For more information, read our full market update here.
Bitcoin is currently in the Extreme Fear zone, which shows that the asset is undervalued and may be an important investment opportunity . The last time Bitcoin was in this territory, it was trading around $16K following the FTX crash, followed by a historical price rally, reaching multiple all-time highs.
Figure 1 - Bitcoin Fear & Greed Index
Source: Glassnode
The two examples below, a macro-specific and crypto-specific event, led to the largest daily drawdowns of Bitcoin and Ethereum. These can be used to understand how their prices may move after yesterday's events.
Figure 2 - Bitcoin 3 Biggest Daily Drawdowns Since 2020
Source: 21Shares
Figure 3 - Ethereum 3 Biggest Daily Drawdowns Since 2020
Source: 21Shares
Below, we outline the macro-specific events that potentially affect Bitcoin and Ethereum's recovery in the near future.
* Short-term potential price movement
Important to note that past performance is not indicative of future results but can still serve as a useful reference point.