Bitcoin briefly slipped under the $20,000 mark in Asian afternoon hours amid a drop in the Asian and European equity markets.

Bitcoin fell to $19,880, revisiting levels from last week, before gaining some $300 at writing time. The asset fell to as low as $17,710 in mid-June as investors took money off risky assets amid a poor macroeconomic environment.

Bitcoin

Bitcoin fell to last week's support amid revived growth concerns. (TradingView)

Inflation rose to a nearly 37-year high of 10% in Spain, denting investor sentiment in Europe. The Stoxx Europe 600 index fell 0.84%, while Germany’s DAX dropped 1.84%. Stocks in Asia also declined, with Japan’s Nikkei falling 0.92% and the Shanghai Composite shedding 1.40% despite some Chinese cities reducing quarantine requirements on Tuesday.

Wells Fargo said in a Tuesday note that a fall in equity prices was likely to “take time to repair.” In the U.S., the S&P 500 has fallen more than 20% from its December 2021 peak – putting it in a technical “bear market” – as inflation hit a 28-year record in May.

“For now we favor patience before committing new cash to equities,” the Wells team wrote. “With the Federal Reserve just beginning the tightening cycle, we have shifted our investment preferences away from economically sensitive assets and toward more quality-oriented and defensive assets.”

The Wells note came as New York Federal Reserve President John Williams said Tuesday he expects the “U.S. economy to slow,” according to MarketWatch.

Bitcoin has traded similar to risky technology stocks in the past year, meaning further downside in popular tech bets could see the world’s largest cryptocurrency dropping to levels previously seen before 2018.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.

More Meme Coins News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP