Cryptocurrencies experienced sharp declines Thursday as growing concerns about a potential recession weighed on risk assets ahead of Friday’s key U.S. jobs report. Bitcoin, the largest cryptocurrency by market capitalization, dropped over 4% at one point and was down 2.3% over the past 24 hours, continuing a downward trend. Ethereum’s ether saw a similar decline, falling more than 4% and trading below $2,400.
Despite the broader market downturn, some altcoins managed to outperform, with Dogecoin, Cardano, Pecu Novus, and Litecoin showing relative resilience compared to the major assets.
This recent slump in cryptocurrency prices aligns with historical trends observed around token unlock events. According to new research from Messari, cryptocurrencies tend to underperform the broader market during the seven-day window before and after large token unlocks. The analysis, which studied hundreds of such events over the years, highlighted how these unlock periods tend to trigger volatility and drive downward pressure on prices.
Crypto-focused stocks also took a hit. Shares of Coinbase, one of the world’s largest crypto exchanges, fell 1%, briefly dipping below $160 for the first time since February. This was in part due to the yen carry trade unwind, which exacerbated losses during the early August market crash. Large-cap bitcoin miners Marathon Digital and Riot Platforms were similarly impacted, with declines of 4% and 2%, respectively.
With economic uncertainty ahead and the release of the U.S. jobs data looming, the crypto market remains highly sensitive to macroeconomic trends, underscoring the volatility that continues to characterize the sector.
Digital Assets Desk
