While analysts were relatively positive and hoped bitcoin (BTC) would take a new start, all their hopes have been dashed for a few days. Indeed, the BTC like other cryptocurrencies, continues to plunge and continues its descent towards prices even lower than the others.
A falling market
Global cryptocurrency market capitalization has dropped about 8% now rising to $1.66 billion. 6 months ago, it had set a record of $3 billion. This was during the period when BTC and ether (ETH) peaked.
In the past 24 hours, BTC lost nearly 10% its value to reach $35.8 at the time of writing. Ether (ETH) has, meanwhile, fell nearly 9% to reach $2.68 thousand. Meanwhile, all three major stock futures markets are extending losses from Thursday’s plunge. The Dow Futures (INDU) lost 0.5%, the S&P Futures (SPX) – 0.6% and the Nasdaq Futures – 1%.
“Bitcoin was surprisingly calm today given the turbulence in other asset classes. However, the fall of the market’s main cryptocurrency is once again a reminder that bitcoin is highly correlated to stock market movements Americans. Where the Nasdaq goes, bitcoin is sure to follow”City Index market analyst Tony Sycamore wrote in a note to CoinDesk.
Other victim cryptocurrencies
The correlation between bitcoin (BTC) and the tech-heavy Nasdaq recently hit a new all-time high at around 0.75. For good reason, speculators are turning away from risky assets, due to the various comments made by the Fed about cryptocurrencies.
Since the beginning of the crisis and the fall in value of BTC and other major digital assets, cryptocurrencies are hard hit. Here they are: binance coin (BNB: -6.1%), ripple (XRP: -4.7%), terra (LUNA: -4.5%), solana (SOL: -9.2%), cardano ( ADA: – 7.0%), avalanche (AVAX: – 11.3%), polkadot (DOT: – 8.8%), and polygon (MATIC: – 7.8%).
The cryptocurrency market is going through a dark period. Silent, the crisis began by affecting the traditional equity market and is now spreading to that of digital assets. Since it caused the fall in value of BTC, several other cryptocurrencies have followed suit.
Source: Seeking Alpha
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