Cryptocurrencies experienced a downturn on Thursday as recession fears impacted risk assets, ahead of a crucial jobs report due on Friday.
Bitcoin (BTC) fell over 4% at one point, but recovered to $56,500 at the time of writing, marking a 2.2% decline over the last 24 hours. Ethereum’s ether (ETH) also dropped more than 4%, trading below $2,400. The CoinDesk 20 Index, which tracks a broad basket of cryptocurrencies, fell by more than 3%, though dogecoin (DOGE), cardano (ADA), and litecoin (LTC) managed to perform slightly better.
The Aptos (APT) token, native to the layer-1 blockchain Aptos, saw the steepest decline, plummeting 7% amid concerns about an impending token unlock event. Next week, $65 million worth of locked tokens—equivalent to 2.3% of the current supply—will enter circulation, including allocations to early investors, according to Token.Unlocks data.
Historical analysis by Messari reveals that cryptocurrencies have generally underperformed the broader market in the seven-day period surrounding significant token unlock events, based on a review of hundreds of such events over recent years.
In traditional financial markets, U.S. equities also faltered during the morning session, reflecting a broader risk-off sentiment. The Dow Jones Industrial Average (DJIA) fell by 0.9%, while the S&P 500 dropped 0.5% by midday Eastern time. The Nasdaq 100, which had initially gained, ended the session largely unchanged.
Crypto-related stocks mirrored the negative sentiment. Coinbase (COIN), the major cryptocurrency exchange, fell 1%, briefly dropping below $160 for the first time since February. This decline surpassed the lows observed during the early August downturn triggered by the Japanese yen carry trade unwind. Major bitcoin miners Marathon (MARA) and Riot Platforms (RIOT) also saw declines, down 4% and 2%, respectively.
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