Market Wrap: Bitcoin, ETH and DeFi Assets Fall as Investors Focus on Downside

An influential survey shows 60% of respondents thought bitcoin could hit $10,000 before it recovers

article-image

blockworks exclusive art by axel rangel

share

key takeaways

  • Bitcoin fell back sharply after rallying to $22,000 last Friday
  • The upcoming release of the US CPI report and the kickoff of the second quarter’s earnings season add to uncertainty

Bitcoin fell to well below $21,000 Monday after climbing to $22,000 last Friday. The cryptocurrency dropped 2.2% to $20,489, while ether (ETH) dipped 3.1% to $1,140 as of 4:00 pm ET Monday. 

Major cryptoassets’ slide came after the Bloomberg MLIV Pulse survey found that 60% of respondents thought bitcoin (BTC) would head lower to $10,000 while 40% saw it climbing to $30,000.

[stock_market_widget type=”accordion” template=”chart” color=”#6F24CA” assets=”BTC-USD,ETH-USD” start_expanded=”true” display_currency_symbol=”true” api=”yf” chart_range=”1mo” chart_interval=”1d”]

Among the sectors hit hardest today was decentralized finance (DeFi). Uniswap’s token was down 8.17% to $5.83, while Maker’s token fell by 4.09% to $917.02. Aave’s token dropped 2.59% to $75.47.

US equities also skidded, with the DJIA closing 0.5% lower at 31,173.84, while the S&P 500 dropped 1% and Nasdaq was down 2.3%.

[stock_market_widget type=”accordion” template=”chart” color=”#6F24CA” assets=”^IXIC,^DJI,^GSPC” start_expanded=”true” display_currency_symbol=”true” api=”yf” chart_range=”1mo” chart_interval=”1d”]

Despite Monday’s slide in the major indexes, Nicholas Colas, co-founder of DataTrek Research, believes there could be more upside, at least in the short term. “The current move higher for US large caps may have a little further to run, but we are already most of the way through the ‘typical’ 2022 bear market rally (up 6% versus 7 – 11%),” he wrote in a note Monday.

Oil prices tentatively resumed their downward trend as China’s new wave of Covid-19 cases rises. WTI Crude Oil for August delivery was down 1.38% to $103.34 per barrel, while Brent Crude (ICW)’s price fell by 0.7% to $106.27 for September delivery, according to Wall Street Journal’s real-time data. 

The euro is still gradually closing in on parity with the USD as experts warn of an impending economic slowdown in Europe. 

“Germany, the industrial powerhouse of Europe, is facing a dramatic drop-off in production thanks to the Russian threat to cut off natural gas, and France just nationalized its national utility company to keep energy costs down.” Michael Rosmer, CEO and co-founder of DeFiYield, told Blockworks. “This is going to ripple through all markets, not just crypto, but crypto and equities will likely face the most volatility as a result,” he said. 

“Even more investors will flee to safe-haven assets, meaning that without positive news to counterbalance Europe’s economic struggles, investors could be due for further pain,” Rosmer added. 

Top Stories

3AC Co-Founders Remain Silent, Creditors go to Court

  • Crypto hedge fund Three Arrows Capital’s founders Su Zhu and Kyle Davies “have not yet begun to cooperate with the Foreign Representatives in any meaningful manner,” a court document filed last Friday showed. 
  • In a court hearing Tuesday, Zhu and Davies were mute and unseen on a Zoom call. 

What Could Crypto M&A Look Like in This Year’s Second Half?

  • Mergers and acquisitions activity in the crypto industry in the first half of 2022 surpassed last year’s record pace. 
  • “Many companies may not be able to get through [the current market downturn] depending on how much money they’ve raised and the resources they have,” Kavita Gupta, founder of the Delta Blockchain Fund, told Blockworks.

Funding Roundup: Despite Bear Market, Money Is Still Pouring Into Crypto

  • Nexo expressed interest in buying Vauld to accelerate its presence in Asia from Celsius. 
  • Rubix, layer-1 blockchain protocol for peer-to-peer data transfer and transactions, landed a $100 million investment from LDA Capital.

Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

Immutable has been building a game with Ubisoft that was slated to unveil in April. It may be a TCG.

article-image

Curve founder Michael Egorov is working on a new protocol designed to eliminate impermanent loss, rethink token emissions, and capture BTC-native yield

article-image

Mining outfits have gone bust in the wake of prior halvings. Not so this time around.

article-image

Zora’s announcement that its token is for “fun only” sparked a debate about the need for such tokens

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025