"The market is ending the week with two bruises: AI fatigue and Hormuz heat," stated Patrick Munnelly from Tickmill Group, highlighting the pressures impacting both the stock and cryptocurrency markets. Bitcoin experienced a 1.2% decline, trading just above $63,000, alongside ether, which dropped 1.74% amidst a broader risk-off sentiment fueled by a selloff in semiconductor stocks and escalating tensions in the Middle East.
The total market capitalization for cryptocurrencies decreased by 1.86%, settling at $2.16 trillion. This downward trend was mirrored in traditional markets, with Nasdaq 100 futures falling 1.91% and S&P 500 futures down 0.96%. The Dollar Index rose to 100.75, while gold prices climbed back above $4,000, indicating a shift towards safer assets.
Privacy coins showed some resilience, with ZEC and DASH recording gains despite the overall negative sentiment. Meanwhile, AI tokens such as FET and TAO rose slightly, even as the sector encounters challenges maintaining momentum since mid-June.
A positive note for bulls is the average relative strength index (RSI) across crypto pairs, which fell to 42.23, nearing oversold levels that previously led to a price bounce in July. Additionally, the long-short ratio in crypto futures markets has dropped to 0.94, suggesting bearish control over the market.
This material is informational and should not be considered financial advice.
