Aptos Leads Losses as Crypto Weakness Continues; Coinbase Shares Fall to 7-Month Lows

09/06/2024 03:26
Aptos Leads Losses as Crypto Weakness Continues; Coinbase Shares Fall to 7-Month Lows

Cryptocurrencies continued their weak trading as recession fears weighed on risk assets ahead of Friday's key jobs data report.

Cryptocurrencies continued trending to the downside as recession fears weighed on risk assets ahead of Friday's key jobs data report.

Bitcoin {{BTC}} declined more than 4% at one point Thursday before bouncing to $56,500 at press time, off 2.2% over the past 24 hours. Ethereum's ether {{ETH}} declined over 4% during the same period, trading below $2,400. The broad-basket CoinDesk 20 Index was down more than 3%, with dogecoin {{DOGE}}, cardano {{ADA}} and litecoin {{LTC}} outperforming.

Read more: Bitcoin Flounders Ahead of Friday Jobs Report That Might Push Fed to Slash Rates by 50 Basis Points

Native token of layer-1 blockchain Aptos {{APT}} tumbled 7%, the largest loser among the CoinDesk 20 constituents, as an upcoming token unlock event weighed on its price. Some $65 million worth of locked tokens, 2.3% of the current supply, will be added to circulation next week including to early investor, per Token.Unlocks data.

Cryptocurrencies usually underperformed the broader market in a window of seven days before and after large token unlocks over past years, a recent Messari research concluded analyzing hundreds of unlock events over the past years.

Looking at traditional markets, key U.S. equities declined during the morning session in a broader risk-off sentiment. The Dow Jones Industrial Average (DJIA) was down 0.9%, while the broad-based S&P 500 lost 0.5% by 12:00 Eastern time. The tech-heavy Nasdaq 100 erased its opening gains and stood mostly flat.

Crypto-focused stocks also performed poorly. Crypto exchange giant Coinbase (COIN) declined 1%, briefly slipping below $160 for the first time since February, taking out the lows hit during the early August crash due to the Japanese yen carry trade unwind. Large-cap bitcoin miners Marathon (MARA) and Riot Platforms (RIOT) were down 4% and 2%, respectively.

Read more --->