Another working week is coming to an end. US GDP data was a pleasant surprise with +3% QoQ (expected +2.8% / +1.4% earlier). But it didn’t help the markets to rise.
🔴 Capitalization of digital assets fell by 7.9%. The correlation between cryptocurrencies and US stocks has increased markedly in recent weeks. Therefore, the slowdown in indexes is affecting the cryptocurrency market. The court epic with Pavel Durov does not add optimism to the whole market. Also, this week saw the first outflows from BlackRock’s BTC-ETF in a long time.
In general, the month for the crypto market ends with a drop of more than 10%. Traders should prepare for September. Historically, this month is even worse than August. However, the average drop is not as severe. The market is likely to be in consolidation for the first half of the month (assuming news doldrums).
🔴 The stock market closes the week in the red zone. The S&P 500 index hit resistance near an all-time high and rose just 0,24%. The Nasdaq fell 0,80% as sales in the technology sector dragged the index down. Nvidia had a great report, but investors’ reaction was the worst in 2.5 years: -6,5%.
Perhaps this is a sign of market fatigue. The company’s business can’t keep flying upwards as the high base effect kicks in.
