CoinDesk 20 Down 7%, Bitcoin Sinks by 5% as Asia Trading Week Begins
The CoinDesk 20 (CD20), a measure of the largest digital assets, started the Asia trading week down 7%, with bitcoin trading 5% lower due to increased expectations for a Federal Reserve rate cut in September. Almost all constituents in the CD20 posted larger losses than bitcoin, with Ether (ETH) down 5.8%, Solana (SOL) down 7.8%, and XRP down 7%. CoinGlass data revealed $175 million in long liquidations over the past 24 hours. The U.S. jobs data was stronger than expected, but a rising unemployment rate has led to predictions of a Fed rate cut in September. Citi Research predicts eight Federal Reserve rate cuts from September 2024 through July 2025, lowering the benchmark rate by 200 basis points to 3.25%-3.5%. Meanwhile, bettors on Polymarket predict 1-2 rate cuts by the end of the year. The European Union's decision to impose tariffs on Chinese electric vehicle imports and the potential for a hung parliament in France have also impacted market sentiment.
