Opening Bell: Why bitcoin just plunged

Today's market moves and stock tips.
View in browser
INSIDER
Subscribe

10 THINGS BEFORE THE OPENING BELL

Welcome to Monday, readers — I'm Phil Rosen. Things are looking shaky and bleak across crypto markets. Bitcoin is at its lowest level since late 2020, and a bevy of other tokens are trading well in the red too. 

Let's get started. 


If this was forwarded to you, sign up here. Download Insider's app here.


Bitcoin price graphic

1. Bitcoin fell below $24,000 Monday, after fresh inflation concerns had investors fearing that the Federal Reserve could act more aggressively to control soaring prices

Bitcoin's fall was part of a wider crypto market selloff. In the last 24 hours, ethereum has also cratered almost 18% to $1,205, according to CoinDesk data. 

But it is not just rising inflation spooking crypto investors. One of the largest crypto lenders, Celsius Network, announced Sunday it was pausing all customer withdrawals.

"Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts," Celsius said in a statement.

The news exacerbated the decline of cryptocurrencies, and prompted the price of the Celsius token to fall as much as 60%.  

"Perhaps the biggest carnage has been in the crypto space which is on the verge of a reckoning now that the gloves are off around global inflation and the realities of a new world where fixed interest actually pays a yield – albeit one still deeply negative in real terms," said a senior market analyst at OANDA.

Get the full report here.


In other news:

dollar oil gas

2. US stock futures fell early Monday, as stronger-than-expected inflation sent shockwaves through markets. Meanwhile, Bitcoin was last seen trading around the $24,000 level. Here are the latest market moves.

3. On deck today: Trinity Biotech PLC, Oracle, and Lifeway Foods, all reporting. Also, the first NFT collection created by Ringo Starr will be offered at auction today. 

4. The 28-year-old crypto CEO who "inspires" Jack Dorsey broke down his analysis of bitcoin. Prior to Bitcoin's plunge over the weekend, Jack Mallers, the CEO of Strike, cited a specific equation as part of why there's hope for the world's biggest crypto by market cap. He shared why investors should still be bullish even as bitcoin falters. 

5. The US dollar and crude oil have just broken off from a key historical trade link. Usually, when the dollar strengthens, commodities get cheaper. But now the opposite is happening. An economist broke down why this makes for a "double whammy" for global markets.

6. Cathie Wood's Ark Invest said Zoom could see 1,750% upside if hybrid work takes over. In-office mandates from employers will likely fuel high rates of attrition among staffers, which is the opposite of what companies want. The stock just surpassed Tesla as the fund's biggest holding. 

7. Russia's war on Ukraine has cost global companies $59 billion in losses amid sanctions and hasty exits. Nearly 1,000 Western businesses have committed to exiting completely from Russia or slashing some business there, the Wall Street Journal reports. Here's what you want to know. 

8. The CEO of this classic Berkshire Hathaway business explained why Warren Buffett's backing gives him an edge over rivals. The furniture-rental company's leader offered a rare glimpse inside a Buffett conglomerate — and explained why he isn't stressing about the next recession. 

9. There's no question that the economy has peaked, according to a research-firm head who used to be Morgan Stanley's equity strategy chief. Adam Parker, who founded Trivariate Research, said investors should buy stocks in these four economically sensitive industries right now.

University of Michigan

10. Americans have never felt this bad about the economy. The University of Michigan consumer sentiment index cratered from 58.4 to 50.2 in an early June reading. That marks the lowest level since regular data collection began in the 1970s.


Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.


Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Hallam Bullock (tweet @hallam_bullock) in London. 

ADVERTISEMENT
  1. Are ESG investments really delivering on their promise? Some investors wonder about potentially sacrificing returns, while others consider whether their investments will make a difference. Learn how Northern Trust can build a plan that reflects your values and achieves what's most important to you.
Download on the app store   Get it on google play

Commentaires

Posts les plus consultés de ce blog

Chris Ramsey can take the heat, but what would relegation for QPR mean for black managers in the Premier League?

The Best Specialty Burgers On Earth, Power Ranked.