Crypto and stocks see deep sell-offs as macro indicators spook investors

MOST cryptocurrency and stock markets have turned red following stronger-than-expected US economic data released yesterday, signalling potential hawkishness from the Federal Reserve as 2025 kicks off, note market watchers.

The ISM Services Purchasing Managers Index - a key gauge of activity in the services sector - and job openings data both exceeded forecasts, suggesting resilience in the US economy. 

Bitcoin slipped below the critical $100,000 level, trading around $95,700 this morning. Altcoins bore the brunt of the market's risk-off sentiment, with Fantom (FTM) down 18.33% and ApeCoin (APE) off by 14.35%.

The Fear and Greed Index slid into 'Neutral' territory for the first time since November, reflecting heightened uncertainty.

Investors are now looking to Friday's US unemployment data to either confirm or challenge the strength suggested by recent reports, a key factor that could shape Federal Reserve policy expectations moving forward.

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In the Markets

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Total crypto market cap

$3.34 trillion (-6.91%)

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What Bitcoin did yesterday

Daily high $101,990  |  Daily low $95,259

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Bitcoin market capitalisation

$1.88 trillion (-6.02%)

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Bitcoin 24-hour trading volume

$65.48 billion (+35.8%)

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SP500

-1.1%

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Fear and Greed Index

Neutral

‍Source: Coinmarketcap

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI) (14)

24.7

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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