After surging past the $30,000 mark on Tuesday, bitcoin threatens to drop below that level. This suggests that the world's largest cryptocurrency might not be able to provide a safe haven for investors.
Bitcoin is down 5.4% at midday Wednesday on the same day that the three major US stock averages are all down more than 1%. The market volatility was triggered by Jamie Dimon, the CEO of JPMorgan Chase, who warned that an economic hurricane was approaching. Dimon cited the potential impact of the Federal Reserve's tightening cycle and the Russian invasion of Ukraine as factors that could trigger a significant market decline.
A political consultant named Elissa Slotkin has also launched a bipartisan bill requiring Congress members to reveal their cryptocurrency holdings. According to Bloomberg, the bill would require the disclosure of the transactions and spouses of lawmakers.
Other major cryptocurrencies are also taking a hit, such as Ethereum, down 5.5% at around $1.86K. On Wednesday, most alternative cryptocurrencies, such as Solana's SOL token, declined along with Bitcoin. For instance, it lost 10% over the past 24 hours. Other notable altcoins such as ADA and GALA were also down by 7%. Binance coin and Cardano dipped more than 5%.
In addition to cryptocurrencies, other related stocks are also taking a hit, such as MicroStrategy, Riot Blockchain, and Marathon Digital. These companies are down roughly 10%.
Stock, crypto experience tough month
May was a difficult month for both the stock and crypto markets. It's believed that some investors are still holding back from buying both the traditional stocks and cryptocurrencies due to the uncertainty surrounding the global economy.
After a rough month, the stock and crypto markets started to recover during the final week of May. Despite the positive sentiment, the overall theme of the market remains negative.
In May, Bitcoin performed poorly compared to other cryptocurrencies in the top 20 most popular digital assets. This suggests that investors are still reluctant to take on the risks associated with the crypto market.
For the past nine years, Bitcoin has typically performed well in June. However, its chances of a strong return decrease over the next three months.
Due to the different factors that affected the cryptocurrency's performance in May, it could not maintain its seasonal strength. This year, various factors such as rising interest rates and geopolitical risks have affected the market.
While most of the market is taking a setback, WAVES is performing well, with a 21% increase in value over the past 24 hours. During a television interview on Wednesday, the founder and CEO of WAVES, Sergey Ivanov, said that the company is working on an algorithm to address the dollar's weakness.
The Waves protocol's stablecoin, known as USDN, requires some adjustments following the recent depeggings. Like Terra's UST, the USDN version of the Waves protocol has a similar design.
According to a source, Polygon conducts more thorough checks on potential investors in India. This move comes as the government of India has been conducting more scrutiny on various digital assets and companies. Polygon developers in the country have also been discussing the difficulty in securing funding and investment from the company.
The highly anticipated Optimism token (OP) airdrop was able to launch earlier than expected. Some users were able to claim OP tokens during the early stages of the process. However, a member of the team noted that some of the changes for the airdrop were leaked ahead of the official announcement.