The stock and crypto markets crashed today, August 19, erasing some of their recent gains and leading to substantial losses. Bitcoin price plunged to $113,000, down from the all-time high of $124,200.
Stocks and the Crypto Market are Going Down
Most altcoins were in the red, with popular tokens like Aerodrome Finance (AERO), SPX6900 (SPX), Injective (INJ), and Sei (SEI) plunged by over 8%, while the market capitalization of all cryptocurrencies plunging from over $4 trillion last week to $3.8 trillion today.
The same crash happened in the stock market, with the risky technology companies being the most volatile. Data shows that the Nasdaq 100 Index fell by 315 points and the S&P 500 fell by over 37 points.
The stock and crypto market crashed as traders pared back their expectations for Federal Reserve interest rate cuts. Odds on Polymarket have plunged from 100% last week to 71% today.
These odds have plunged recently after the US published strong consumer and producer inflation report last week. The headline consumer price index (CPI) remained unchanged at 2.7%, while the core CPI rose to 3.1%.
More data shows that the producer price index (PPI) continued rising, reaching a multi-month high of 3.6%. Therefore, these numbers mean that Trump’s tariffs are having an impact and that they will continue rising.
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The stock market, especially technology companies, crashed amid concerns that they are highly overvalued. In a recent note, a Strategas analyst said:
“It is difficult to poke holes in the bull case; the path of least resistance is likely higher, but we find ourselves increasingly worried that traditional risk assets (stocks and bonds) appear priced to perfection.”
Bitcoin Price Risky Pattern Contributing to Crypto Market Crash
The crypto market is also crashing after Bitcoin formed the risky double-top pattern on the daily chart as we warned here. As the chart above shows, it has also formed a rising wedge pattern on the weekly chart.
This pattern comprises of two ascending and converging trendlines, with a breakdown happening whenever they near their confluence level, which is about to happen. As such, there is a risk that it will have a bearish breakdown, which will affect most altcoins.
READ MORE: Metaplanet Stock Price Has Crashed: Why a Surge is Coming
