عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Bitcoin, Ether Hit multi-month Lows as Recession Worries Take Hold

A souvenir bitcoin token is seen pictured with a 100 ruble bill in Moscow on July 30, 2024. (Photo by Alexander NEMENOV / AFP)
A souvenir bitcoin token is seen pictured with a 100 ruble bill in Moscow on July 30, 2024. (Photo by Alexander NEMENOV / AFP)
TT
20
TT

Bitcoin, Ether Hit multi-month Lows as Recession Worries Take Hold

A souvenir bitcoin token is seen pictured with a 100 ruble bill in Moscow on July 30, 2024. (Photo by Alexander NEMENOV / AFP)
A souvenir bitcoin token is seen pictured with a 100 ruble bill in Moscow on July 30, 2024. (Photo by Alexander NEMENOV / AFP)

Bitcoin and ether plunged on Monday to multi-month lows as worries over a possible US recession in the wake of soft data gripped financial markets and triggered a rush to safe-haven assets.
Crypto markets have gotten a boost this year after the US Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether.
More recently, however, bitcoin has fallen alongside other assets including global equities in a broad selloff as investors fear a US recession could be on the horizon, with rising geopolitical worries also weighing. It has lost over a third of its value since hitting a record high in March.
"It's a big reminder that bitcoin and crypto in general are risk assets and sit at the pointy end of the risk spectrum," said Tony Sycamore, market analyst at IG.
Bitcoin fell 13% from its close on Sunday to $51,560, heading for its largest one-day fall since November 2022 and its lowest since February. Ether slid 17% to its lowest since mid-January at $2,277.
Sycamore said bitcoin was testing trend channel support at the $54,000/$53,000 area and needed to hold there to "prevent further capitulation towards $48,000."
Shares in crypto-related US stocks listed in Frankfurt fell heavily in early trading on Monday, with Coinbase down over 18%, while those in miners Riot Platforms and Marathon Digital were down 17.7% and 20%, respectively.

Most Viewed

 
Business

Gold Hits Nearly Two-month High as Middle East Tensions Spur Safe-haven Demand

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
TT
20
TT

Gold Hits Nearly Two-month High as Middle East Tensions Spur Safe-haven Demand

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices climbed on Friday to their highest levels in nearly two months, and were on track for a weekly gain, after Israeli military strikes on Iran drove investors toward safe-haven assets.

Spot gold was up 1.2% at $3,423.30 an ounce, as of 0544 GMT, after hitting its highest since April 22 earlier in the session. Bullion has gained more than 3.4% so far this week.

US gold futures gained 1.2% to $3,444.50.

Geopolitical tensions escalated after Israel targeted Iran's nuclear facilities, as tensions mounted over US efforts to halt Iran's production of atomic bomb materials.

"This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response," said Tim Waterer, chief market analyst at KCM Trade.

Israel declared a state of emergency, citing expected missile and drone strikes from Tehran, and the US military is preparing for various contingencies in the Middle East, including potential assistance with evacuating American civilians, a US official told Reuters on condition of anonymity.

"Gold surged past resistance around $3,400 on news of the airstrikes, and further upside could be in-store should the escalation continue," Waterer said.

Signaling a cooling US labor market and subdued inflation pressures, new applications for unemployment benefits held at an eight-month high last week, while slowing domestic demand helped restrain producer prices in May.

The data, released a day after the Labor Department reported a moderate rise in consumer prices in May, bolstered expectations of an earlier rate cut.

Traders are now expecting a Federal Reserve interest rate cut of 55 basis points by the year-end, starting in September rather than October as previously anticipated.

Elsewhere, spot silver fell 0.3% at $36.25 per ounce, platinum lost 1% at $1,282.55 and palladium shed 0.5% to $1,050.61. All three metals were set for weekly gains.