Bitcoin (BTC) has recovered back to near $56,000 after a sharp drop yesterday.
US Stocks
The S&P 500 futures contracts recovered in overnight trading after the index experienced its worst day in nearly two years as global markets sold off.
Futures linked to the S&P 500 rose 0.9%, while Nasdaq 100 futures rebounded 1.3%. Dow Jones futures also increased by 222 points, about 0.6%.
The overnight fluctuations followed a significant sell-off during the regular trading session. The 30-stock Dow index dropped 1,033.99 points, or 2.6%, while the S&P 500 lost 3%. Both indexes recorded their worst trading day since September 2022. The Nasdaq Composite plummeted by 3.43%.
On Friday, a weak July jobs report raised concerns that the Federal Reserve (Fed) is lagging in cutting interest rates, increasing fears of an economic recession.
These fears spread to global markets, with Japan’s Nikkei 225 recording its worst daily drop since Black Monday in 1987. US Treasury yields fell as investors flocked to safe-haven bonds. The Cboe Volatility Index surged to 65 at one point, the highest since 2020.
The Dow, S&P 500, and Nasdaq fell by 5%, 6%, and 8% respectively over three days, marking the worst three-day performance in over two years.
Last week, the Bank of Japan raised interest rates, contributing to the yen’s appreciation. This affected traders who borrowed in the cheaper currency to buy other global assets.
AI stocks were hit hardest, with Nvidia and Apple dropping about 6% and nearly 5%, respectively. Both stocks recovered in after-hours trading.
The VanEck Semiconductor ETF (SMH) fell 2%, while large-cap companies like Alphabet, Amazon, and Tesla slid more than 4%. All three stocks rose about 1% in overnight trading.
Many investors saw Monday’s sell-off as inevitable in a market that had reached high valuations and new records, with some warning that the pain might continue.
In other news, Palantir Technologies surged 12% in after-hours trading due to strong quarterly earnings, while Lucid Group rose nearly 6% on better-than-expected Q2 revenue.
Bitcoin and Altcoins
Bitcoin recovered near the $56,000 region after hitting a local bottom at $49,000 yesterday.
The market stabilized following a heavy sell-off that pulled BTC down for four consecutive days, recording its worst trading session since March 2024.
The Altcoin market saw a robust recovery after yesterday’s correction.
Leading the charge were Bittensor (TAO) and Akash Network (AKT), with both projects surging more than 30% in just 24 hours.
Mantle (MNT), Brett (BRETT), and Aave (AAVE) followed with gains exceeding 20%.
Many other projects also posted impressive 10%+ gains on the day, including BinaryX (BNX), Helium (HNT), Ondo (ONDO), Shiba Inu (SHIB), Worldcoin (WLD), Celestia (TIA), Algorand (ALGO), AIOZ Network (AIOZ), Mantra (OM), Stellar (XLM), MultiversX (EGLD), Nexo (NEXO), Render (RNDR), Immutable (IMX), and more.
After hitting a local bottom around $2,111 yesterday, Ethereum (ETH) has started to stabilize and recover.
The second-largest asset by market capitalization is striving to reclaim the $2,500 region, with an 11% increase over the past 24 hours and is currently trading around $2,516.
You can check coin prices here.
