Crypto Market Faces Turmoil: Aptos Plummets and Bitcoin Dips Below $57K

Crypto Market Overview

Cryptocurrencies are experiencing a significant downturn as recession fears loom, particularly before the upcoming jobs report on Friday.

Bitcoin (BTC) saw a steep decline of more than 4% at one point on Thursday, dropping below $56,000 before recovering slightly to $56,500, representing a 2.2% dip over the previous 24 hours. Similarly, Ethereum's ether (ETH) fell over 4%, trading below $2,400. The CoinDesk 20 Index also witnessed a decline of more than 3%, with other cryptocurrencies like dogecoin (DOGE), cardano (ADA), and litecoin (LTC) managing to outperform the general trend.

Focus on Aptos

The native token of the layer-1 blockchain Aptos (APT) suffered the most, tumbling 7% amid concerns over an upcoming token unlock event. Approximately $65 million worth of locked tokens, which constitutes 2.3% of the current supply, will soon be added to circulation, impacting prices significantly.

Research from Messari indicates that cryptocurrencies typically underperform the broader market in the week surrounding large token unlocks, a trend observed over several years.

Traditional Markets Reaction

In traditional markets, major U.S. equities showed a decline as well, reflecting a broader risk-off sentiment. The Dow Jones Industrial Average (DJIA) fell 0.9%, while the S&P 500 dropped 0.5% by noon Eastern time, and the tech-heavy Nasdaq 100 remained mostly flat after erasing initial gains.

Crypto Stocks Performance

Crypto-related stocks also faced challenges. Coinbase (COIN) fell 1%, briefly dipping below $160 for the first time in seven months, marking a significant drop since the early August crash. Additionally, large-cap bitcoin miners Marathon (MARA) and Riot Platforms (RIOT) were down 4% and 2%, respectively.