Bitcoin
CoinDesk 20 drops 7%, Bitcoin plunges 5% as Asian trading week kicks off
O CoinDesk 20 (CD20)a measure of the largest digital assets, began the Asian trading week down 7%, while bitcoin traded 5% lower amid heightened expectations for a Fed rate cut in September.
Almost all CD20 constituents are in the red, posting bigger losses than bitcoin. Ether (ETH) is down 5.8%, Solana (SOL) is down 7.8% and XRP is down 7%. CoinGlass Data shows that there were $175 million in long liquidations in the last 24 hours.
ING’s James Knightley wrote that private-sector job growth has been particularly weak, with just 136,000 new jobs added in June, below the 160,000 expected. Government, education and health services contributed nearly 60% of new jobs, while retail, temporary help, professional business services and manufacturing all saw job losses.
Citi Research is making a more aggressive forecast, writing in a recent note which is forecasting eight Federal Reserve rate cuts from September 2024 through July 2025, reducing the benchmark rate by 200 basis points to 3.25%-3.5%.
Polymarket punters are betting the Fed will make 1 to 2 rate cuts by the end of the year, with a 34% chance of 1 cut and a 37% chance of 2.
So-called dovish Fed expectations also 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 parliament potentially suspendeda recipe for political and policy paralysis and potential risk aversion in European markets.