Crypto Market Declines Amid Recession Fears

Despite a sharp decline in Ethereum (ETH) prices, spot Ethereum ETFs experienced significant inflows on Monday, with BlackRock’s iShares Ethereum Trust leading with $47.1 million. The overall crypto market faced a heavy sell-off driven by fears of a U.S. recession and other macroeconomic uncertainties, causing Bitcoin to drop below $50,000 for the first time since February. This market turmoil impacted major crypto-related stocks and exchanges, with companies like Coinbase and MicroStrategy seeing double-digit declines. Over $1 billion in liquidations occurred in the past 24 hours, exacerbated by Japan’s Nikkei index falling 20% from its peak. Analysts attribute the downturn to a combination of economic factors, including weak job reports and interest rate decisions, coupled with significant outflows from major crypto investment funds.