Crypto investors feel the pain from second trading day

Crypto investors feel the pain from second trading day

It was a day to forget for investors in many cryptocurrencies and the companies that concentrate on mining them. Competition assets are affecting the value of such investments, and many felt the pain on the second trading day of the week.

TeraWulf also took a slide, descending at more than 10%. The market for Bitcoin Cash, a popular digital currency, is booming, with the value of the tokens and coins dipping below 8%.

The yield of the 10-year note has roared back after retreating from a 16-year high last week. Treasuries, considered one of the safest investible assets in the world, set new peaks at more than 4.8% on Monday and into Tuesday.

Crypto investors rely on the performance of investments such as Treasuries because they are competitors in a way. The risks associated with mining or holding coins, tokens, and companies involved in mining or holding them are seen as risky assets. Treasuries, which are backed by the belief that the U.S. federal government will never default on its debt, are in sharp contrast to Treasuries, which are backed by the belief that the government will never default on its debt. A possible investment in a Treasury is, in other words, a near-sure bet.

If the value of an asset is rising, all things are equal, the demand for the riskier stuff is decreasing. Tuesday afternoon, it was hard to find any major crypto investment in positive territory. For example, Bitcoin and Ethereum were headed south. The others were at least in good company, such as Bitcoin Cash, Marathon, and TerraWulf.

In the crypto industry, what goes down could come up just as quickly, as we have seen many times in a host of post-swoon rallies. But we shouldn't expect that to immediately occur, particularly if that Treasury yield remains elevated.

The Fed is also expected to raise interest rates again, as it is primed and ready to do so. Their chief bad guy is inflation, so any sign of inflation flaring up again will likely trigger a hike. And there is a host of non-core consumer price index components that could see upticks, particularly gasoline, although crude oil prices have eased slightly in recent days, for the most part, they have marched higher since mid-summer.