A series of disappointing corporate decisions in the United States (US) and Europe have sent global equity markets crashing to the point that the entire cryptocurrency market, including Bitcoin (BTC), has suffered significant bleeding.
On July 24, 2024, Wall Street posted its worst trading day since 2022 as tech stocks came under pressure and artificial intelligence (AI) hype waned.
The plunge came shortly after Tesla, one of the "Magnificent Seven" stocks that has driven global gains this year, posted a decline in second-quarter profits, where it lost a combined $1.05 trillion.
Equities have largely been boosted this year by growing expectations that the US Federal Reserve (Fed) will cut interest rates following slow inflation and a weak labor market.
Still, it's hard to see how gains in the market can continue for now after several weaker-than-expected earnings reports including Tesla, LVMH and the US postal service, said research director at trading platform XTB Kathleen Brooks.
As a result, investors are now awaiting the release of key US economic growth data later this week and a final reading on personal consumption spending that could play a key role in the Fed's decision-making.
On the opposite side, more than $811 million was withdrawn from the Grayscale Ethereum ETF (ETHE) bringing its assets under management (AUM) below $8 billion even as the BlackRock ETH ETF saw inflows for two consecutive days.
As of this writing, BTC price has plunged by 3.10% to $63,984 in the last 24 hours with a market cap of $1.2 trillion and has recorded a 1.198% decline over the past week.