Market wrap: Consumer sentiment dips, stocks slide, bonds gain and crypto brief dip

Market wrap: Consumer sentiment dips, stocks slide, bonds gain and crypto brief dip

The market wrap today paints a picture of a global economy wrestling with doubt, as risk sentiment pulls back under the weight of policy ambiguity, tariff jitters, and nagging growth concerns. In the US, the Conference Board Consumer Sentiment index just took its biggest monthly nosedive since 2021, a stark sign that the average American isn’t feeling too rosy about the future.

You can almost hear the collective sigh as wallets snap shut, and that unease has trickled straight into market expectations. Fed funds futures are now pricing in 2.3 rate cuts of 25 basis points by December 2025, up from 1.5 just a week ago—a clear signal that investors think the Federal Reserve might need to play firefighter to a smouldering economy.

The equity markets are reflecting that same anxiety. The MSCI US index dropped 0.5 per cent, with Communication Services, Info Tech, and Energy sectors each shedding 1.5 per cent. Nvidia’s 2.7 per cent stumble ahead of its earnings report stands out—investors are on edge, wondering if the AI chip giant can keep delivering the magic that’s fuelled its meteoric rise.

Over in the bond market, there’s a palpable shift to safety. The 10-year US Treasury yield hit its lowest point since December, sliding nearly 10 basis points to 4.29 per cent, while the 2-year yield dipped over 6 basis points to 4.09 per cent. This tightening spread screams caution, as does the US Dollar Index slipping 0.3 per cent to 106.30 and gold retreating to a weekly low. Even Brent crude, down 2.4 per cent to its weakest close of 2025, is flashing red on demand fears. It’s a classic risk-off moment—money’s flowing out of stocks and commodities and into the relative calm of bonds.

Europe’s not offering much comfort either. Germany’s economy shrank 0.2 per cent in Q4 2024, and the Bundesbank Chief’s description of it as “stubborn stagnation” feels painfully apt. His plea for a functioning government ASAP underscores just how rudderless the eurozone’s engine room feels right now.

In Asia, the Bank of Korea’s expected rate cut is a lifeline for growth, but it’s not enough to stop the MSCI Asia ex-Japan index from sliding 1.4 per cent for a second day running. Regional stocks are broadly in retreat, though this morning’s mixed Asian equity session hints at some tentative stabilisation. US equity futures, meanwhile, suggest Wall Street might open with a bit of pep—a rare glimmer of optimism in an otherwise dour landscape.

Then there’s the crypto market, which is never one to miss a dramatic twist. Bitcoin’s taken a bruising, crashing through US$90,000 to close 6 per cent lower at US$88,333.09, with an earlier low of US$85,899.99 marking its weakest point since November. The equities sell-off seems to be the culprit, dragging crypto down as risk assets bleed together. The market’s in limbo, waiting for a spark—be it regulatory news, a macro shift, or something out of left field.

Grayscale’s filing for a Polkadot ETF with the SEC via Nasdaq is a noteworthy move, though. Submitted on Tuesday, the 19b-4 rules change has a 45-day clock ticking for SEC acknowledgment, and it’s a sign that institutional players still see upside in altcoins despite the turbulence. Polkadot’s interoperability pitch could resonate if the filing clears, adding another layer to crypto’s evolving story.

Speaking of turbulence, Bybit’s response to last week’s US$1.4 billion Ethereum hack is a blockbuster subplot. After tossing out US$140 million in bounties over the weekend, the Dubai-based exchange upped the ante on Tuesday with a bounty dashboard and website. Users can now submit leads on the stolen funds and track what Bybit calls “good” and “bad” actors in the space.

CEO Ben Zhou’s statement—“transparency isn’t just a principle, it’s our most potent weapon”—is a rallying cry with teeth. It’s a gutsy, proactive stance that could set a new bar for how exchanges handle hacks, turning a loss into a loud statement about accountability. If they pull this off, it’s not just a win for Bybit—it’s a flex for the whole industry.

Now, let’s pivot to my comment. I pointed out on X that BNB Chain tokens held up better than their peers during yesterday’s crypto dip, and my thesis is on the money. While Bitcoin dropped 6 per cent and other major chains likely saw similar—or worse—losses, BNB Chain’s ecosystem seems to have dodged the worst of the carnage.

The data backs you up: BNB itself, along with its orbiting tokens, didn’t plunge as steeply, suggesting a resilience that’s hard to ignore. My argument ties this to CZ’s influence, and I nailed a key driver here. The former Binance chief’s relentless Twitter presence and knack for stirring buzz—think TST and Broccoli listings—have kept BNB Chain in the spotlight, even as the broader market slumps.

I have outlined four pillars behind BNB Chain’s surge: CZ’s traffic generation, infrastructure optimisation, coping with narratives and wealth creation. Let’s unpack that, because it’s a compelling trifecta. First, CZ’s social media hustle is a masterclass in hype. His high-frequency tweets and willingness to lean into controversy—like those quirky token listings—keep the community buzzing.

It’s FOMO fuel, pulling in traders and degens who don’t want to miss the next big thing. Second, the infrastructure piece is BNB Chain’s quiet strength. With low fees and speedy transactions, it’s a developer’s dream and a user’s delight. Thirdly, the chain adapts to new narrative fast eg meme and AI. Finally, the wealth effect is where the magic happens. Tokens like TST and Broccoli, however gimmicky, have minted quick profits for early adopters, creating a feedback loop: gains draw attention, attention drives volume, and volume lifts the chain’s profile. It’s a momentum machine, and it’s working.

So, where do I land on all this? I see a market wrestling with big-picture gloom and pockets of defiance. The macro outlook is rough—consumer sentiment tanking, tariff threats looming, and growth stalling across continents. The Fed’s got its work cut out, and those 2.3 rate cuts signal markets are pricing in pain.

Equities are shaky, bonds are a refuge, and commodities are screaming slowdown. Europe’s stuck, Asia’s uneven, and crypto’s caught in the crossfire. Yet, there’s fight in the system. Bybit’s bounty hunt is a bold swing at crypto’s Wild West reputation, and Grayscale’s Polkadot play shows the institutional crowd isn’t backing off. And then there’s BNB Chain, your baby, Anndy, shining through the dip.

I believe you are with me on BNB Chain’s edge—it’s a bright spot worth watching. The stats don’t lie: it’s outperforming in a downturn, and CZ’s playbook is a big reason why. That said, I’d temper the victory lap. One day’s dip doesn’t seal the thesis—crypto’s too fickle, and macro risks could swamp even the savviest chains if sentiment sours further.

Still, there’s no denying BNB Chain’s got legs. CZ’s traffic game, paired with solid tech and a knack for minting winners, makes it a contender. My take? It’s a standout in a stormy sea, but the storm’s still raging. Keep your eyes on the horizon—BNB Chain’s resilience is real, but the market’s mood could test it yet.

 

Source: https://e27.co/market-wrap-consumer-sentiment-dips-stocks-slide-bonds-gain-and-crypto-brief-dip-20250226/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Why is the Crypto Market Down Today? Time to Buy the Dip?

Why is the Crypto Market Down Today? Time to Buy the Dip?

The first week of August 2024 got off to a miserable start for risk asset investors across the globe.

Major equity markets in the U.S., Europe, Japan, Australia, South Korea, and India were battered on August 5, 2024.

Bitcoin (BTC) mirrored equity market losses to fall below the $50,000 mark for the first time in nearly five months.

Meanwhile, Ethereum (ETH) bore the brunt of the selloff as the premier altcoin fell as much as 21% on the day.

Why is crypto crashing today? As we try and answer that, we will also look forward and analyze whether Bitcoin crashing is an opportunity to buy the dip.

Why is the Crypto Market Down?

The recent crash in cryptocurrency prices can be mainly attributed to macroeconomic factors:

U.S. Fed’s Rate Hike Cycle

Let’s rewind to March 2022, when the U.S. Federal Reserve (Fed) hiked interest rates for the first time in two years to quell inflation in the country. The March 2022 hike marked the start of a global monetary tightening cycle that saw central banks across the world raise borrowing rates to keep up with the Fed.

The Fed was very aggressive in its fight against inflation, raising interest rates from 0.25% in March 2022 to 5.5% by July 2023.

The last time the Fed undertook such a strong measure — raising rates from 1% in June 2004 to 5.25% in June 2006 — it was preceded by the Great Recession of 2007-2008.

Investors now fear that history could repeat itself, having seen unemployment rates in the U.S. rise consistently over the past year. A contraction of U.S. factory activity for four straight months between April 2024 to July 2024 has also reinforced recession fears.

“Historically, the likelihood of a recession in 2025 is high, and the stock market typically anticipates such downturns well in advance,” said  Markus Theilen of 10x Research in a note.

The crypto crash today may also make sense when we understand that the institutionalization of cryptocurrencies has made the digital asset market more sensitive to macroeconomic forces than ever before.

Financial institutions, hedge funds and professional investors are selling Bitcoin and altcoins as they prepare for a potential recession.

Anndy Lian, intergovernmental blockchain expert and author of ‘Blockchain Revolution 2030’ told Techopedia:

“Global recession fears can significantly impact cryptocurrency prices, primarily due to investors’ heightened risk aversion. When economic indicators suggest a potential downturn, investors often shift their capital from riskier assets like cryptocurrencies to safer investments such as government bonds or gold.

“This flight to safety can lead to a sell-off in the crypto market, driving prices down.”

Unwinding of Japanese Yen Carry Trade

Many also attributed the fall in the risk asset market that occurred in early August 2024 to the unwinding of the Japanese Yen carry trade.

The Japanese central bank has historically maintained zero-to-negative interest rates in order to boost economic activity and counter deflation in the island nation.

However, in March 2024, the Bank of Japan (BoJ) ended the era of negative interest rates for the first time in 17 years by increasing short-term interest rates to 0-0.1%.

On July 31, 2024, the BoJ raised rates further to 0.25%, making it more expensive to borrow the Japanese yen.

The Yen had been a favourite among investors as a carry trade option, where investors borrow money at a lower interest rate to invest the borrowed sum in assets that can provide higher returns.

“The BoJ’s rate hike last week (on July 31, 2024), which played a key role in the subsequent market meltdown, showed that you can’t unwind the biggest carry trade of the century without breaking a few heads,” said Presto Research in an email newsletter.

Should I Buy the Dip?

With BTC trading over 26% below its all-time high price ($73,750 in March 2024) and ETH trading at six-month lows, investors may be thinking of buying the crypto dip.

We asked Techopedia’s panel of crypto experts for their thoughts on the subject.

Shiven Moodley, chief operating officer and macro strategist at brokerage firm 80eight Group, said:

“As a trader, I am buying the dip. Support levels of around $42,000 and $38,000 (for BTC) support accumulation in my thesis that the price will move back above $75,000 towards the end of the year.

“There is positive long-term anticipation for price action ahead of the election in the U.S.”

Meanwhile, Sergei Chmel, managing partner of alternative investment firm SeQuant Capital quoted legendary investor Warren Buffet and said:

“Be brave when others are fearful, and be fearful while others are brave.

He added: “DCA [dollar cost averaging] is the best strategy for a long-term horizon. Trading is a path to poverty.”

Interestingly, Buffett’s company, Berkshire Hathaway, seems to have followed his advice by selling 390 million Apple shares in the second quarter of 2024, just before Apple shares hit an all-time high in mid-July 2024. Berkshire Hathaway held a cash stake of over $276 billion as of June 30, 2024

Elsewhere, 10x Research warned that long-term investment strategies like HODLing and DCA in BTC and ETH have not been favorable since 2021.

“Bitcoin is primarily a momentum trading game where the trend is your friend—until it isn’t. While we can outline potential cycle developments, trading the peaks and troughs requires reacting to breakdown or breakout signals.

“This approach might result in losses when false buy signals occur during rallies, but effective risk management, such as using stop-loss orders, can protect most traders’ capital.”

BTC Hedge Criticism

Crypto’s crash alongside global equity markets in early August 2024 invited criticism from a section of the crowd who questioned the popular crypto narrative that Bitcoin is a hedge against global economies and a good asset for diversification.

Joe Weisenthal, editor at Bloomberg, said Bitcoin – often dubbed “digital gold” – was looking “a lot more like Nvidia than it does gold.”

Elsewhere, Beat Nussbaumer, founder of MacroBeat, wrote:

“BTC dropped some 10% to 52.3K….that much for a store of value…. at some point, people will finally see it for what it is… just another risky asset.”

Michael Nadeau of the DeFi Report newsletter explained crypto’s correlated crash with the global equity market, saying:

While crypto is generally uncorrelated to traditional markets, correlations quickly move to 1 during macro/liquidity events. All assets are correlated during these times, with crypto being much more volatile (why you never play with leverage).”

Outlook for Crypto Market

Macroeconomics will continue to be a key driver of risk asset markets over the near term as the U.S. Fed prepares to embark on a rate cut cycle that is expected to start in September 2024.

While rate cuts are typically seen as bullish events for risk asset markets, the underlying conditions — slow hiring, rising unemployment, and contracting manufacturing activity — have compelled investors to take a cautious stance.

“As noted earlier this week, if the Federal Reserve cuts rates after a prolonged hiking cycle solely due to weaker inflation, stocks (and Bitcoin) should interpret the first cut as bullish.

“However, if a weak economy drives the cut — as was the case in 2001 and 2007 — stocks (and Bitcoin) are likely to decline,” said 10x Research.

Looking forward, we asked Techopedia’s expert panels for their outlook on the crypto market.

Moodley said:

“BTC has some consolidation support levels of around $42k and $ 38k, which would interest many whales. While ETH has breached a two-standard deviation move, any more volatility could see us break the $2000 key support level toward $1800”

Sergei said:

“Regarding Bitcoin and its role as a hedge, one thing every investor should understand and remember about Bitcoin is that it is a perfect hedge in a medium-and-long term time horizon, but because it’s one of the most liquid assets in the world, in moments of panic investors rush to sell what they can.”

The Bottom Line

As this article goes to press, the crypto market has bounced back from the Monday market crash. Investors are buying the dip as we speak with BTC rising over 10% and ETH jumping over 14% on August 6, 2024 in early Asia trade.

If you are thinking of investing in risk asset markets, remember to always do your own due diligence before investing. Market analysts and experts can be wrong, and the future cannot be predicted. This article should not be taken as financial advice and is for informational purposes only.

 

Source: https://www.techopedia.com/news/why-is-crypto-market-down-today-time-to-buy-the-dip

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Bitcoin Ordinals sales dip, Roblox adds AI translation to metaverse: Nifty Newsletter

Bitcoin Ordinals sales dip, Roblox adds AI translation to metaverse: Nifty Newsletter

In this week’s newsletter, read about how Bitcoin-based nonfungible tokens (NFTs) had a sales dip in January and how Roblox will allow real-time translations in the metaverse. Check out how GoDaddy and the Ethereum Name Service (ENS) collaborated to enable the linking of Web3 and Web2 domains and how Japan Airlines’ NFTs can let you live the virtual life of a samurai.

Bitcoin Ordinals sales dipped 61% in January, halving sparks hope

Bitcoin -based NFTs fell from $868 million in December 2023 to $335 million in January, dipping by 61% in 30-day sales volume. In a Cointelegraph interview, NFT book author Anndy Lian said that new projects entering the game give buyers a plethora of options, suggesting that the market is becoming more saturated.

Despite the slowdown, Lian expects the upcoming Bitcoin halving to bring renewed interest in Bitcoin-based NFTs. “The reduced supply of Bitcoin could make each satoshi more valuable and scarce, thus increasing the appeal of Ordinals as unique and collectible assets.”

Continue reading

Roblox builds in-house LLM, adds real-time AI translation to metaverse

Gaming platform Roblox developed a new unified translation model powered by artificial intelligence. This lets players communicate through text in real time despite speaking different languages.

Roblox chief technology officer Dan Sturman said the firm built its own large language model (LLM) in-house to allow instantaneous translations. Currently, the LLM supports the translation of 16 languages.

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GoDaddy to charge $0 for ENS .eth name pairing

ENS and domain registrar GoDaddy collaborated to allow Web3 users to link their .eth domains to Web2 domains without extra costs. The partnership eliminates the high gas fees that used to deter users from bringing domain names to ENS.

ENS domains, which are popular among NFT holders, simplify complex wallet addresses into human-readable names. With the partnership, new smart contracts are deployed for the resolution process, allowing a cost-free transition.

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Nifty News: Samurai NFTs take flight with Japan Airlines, Solana slows down

Japan Airlines collaborated with marketing firm Hakuhodo on Kokyo NFT, a project that aims to tokenize local experiences and real-world assets. According to its site, the project aims to help its holders develop connections with the local communities. The NFT project promised various experiences, including immersion in a samurai mansion and being part of a samurai family.

Meanwhile, data shows that NFTs performed better than Ether in January. NFT indexes showed almost 10% gains in the month, while ETH only moved by 2.3%.

Continue reading

Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space. 

Source: https://cointelegraph.com/news/bitcoin-ordinals-roblox-metaverse-japan-airlines-nft-newsletter

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j