The market slump of last week by many digital assets is starting to look like a fluke, as crypto assets have gradually continued on their recovery part. The crypto market gains yesterday have also summed up a great week for the market, despite progress coming in slowly. The overall improvement of fortunes saw the crypto market move up to about $1.6 trillion in the market, despite a 1% drop in the value of its leading asset, Bitcoin. Bitcoin, the biggest loser from last week’s charade, has continued to struggle to hit $50,000 as the assets moved into its market correction phase.
Nasdaq stocks are down
Unfortunately, despite the slow progress of the digital assets, Nasdaq assets are down at the moment. The unfortunate drop in the value of 2.34% for Apple, 2.5% for Google, and 5.2% for Paypal in the last seven days alone, highlights a lousy week for the tech-centric Nasdaq. Elon Musk’s Tesla shares are down by 4.7%, and Jeff Bezos’s Amazon also another loser by 2.71% to cap off the wrong week.
The problem is believed to be affiliated with high-interest rates, which is believed to be putting pressure on equities that absorbed investor’s fund during the pandemic, as they are now looking overvalued. Many companies are tending towards borrowing this year, a case that will increase their interest rate.
However, the implication of their borrowing means that the cheap cash that powered the stock market in the last year will be unavailable, which is why stocks are down. Many banks and financial lenders who feared that most loans last year would fall under defaults were surprised as they got back their capitals and interest. However, with borrowing set to increase again, banks are set to make the most of the new wave, as stocks will likely suffer.
Crypto big projects have to step up
While the crypto market’s recovery is currently on a slow progression, many big projects in the space are not leveling up as expected. Bitcoin, the number one digital asset in the space, has fallen off the $1 trillion market cap, as the cryptocurrency is struggling to hit the $50,000 mark since the beginning of the week.
Ethereum, the second-largest crypto by market cap and leading altcoin, is also struggling to break the $1,600 barrier, as the cryptocurrency was down by 5.3% in the last 24hours and currently trades at $1,483. The remarkable turnaround of many altcoins like Polkadot, XRP, and co. should also be mentioned as they have all started their recovery process. Despite its market correction, Polkadot had also dropped by 3.4% in the last 24hours, with Bitcoin Cash and Chainlink closing yesterday on 3.8% and 5.2% losses, respectively.
On the other hand, XRP and UNISWAP are the biggest gainers from the last 24hours. While Ripple’s XRP gained by 4.6% in the last 24hours, UNISWAP was behind with gains of more than 3.6% in the last 24hours. Nasdaq might be bleeding from all indications, but the cryptocurrency market is almost back to the basis.