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November 29, 2022
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Guide & Analysis

BTC and ETH implode as crypto market drops 7%

Bitcoin (BTC) and Ethereum (ETH) posted heavy losses in Friday’s cryptocurrency market as US stock prices also fell.

Black Friday was supposed to be last week. Although crypto was for sale the day after Thanksgiving, today it looks even bleaker for cryptoactive investors.

Bitcoin has dropped more than 7% in 24 hours, Ethereum has deflated by more than 8% and Solana has lost 11% of its rising price today. Overall, the global cryptocurrency market capitalization has dropped by nearly 7%. Only two coins out of the top 20 managed to remain in the green – Terra, up 4% in 24 hours, and Polygon, which increased its price by 2%.

It’s not just crypto. After a solid start in the morning, US stock indices are trending down throughout the day and week. The Nasdaq is off pace at 2.8% today, while the Dow Jones is trending 0.9% lighter.

What is the fault?

Well, that’s not the threat posed by the Omicron COVID variant, which hit the coast of California. Recall that economic uncertainty hailed COVID’s first foray into America in March 2020, cutting the stock market to its knees as it sank Bitcoin to just over $4,000.

Each intervention required a new cure. The blockages led to stimulus checks, which led to labor shortages and supply chain problems. As a result, the prices of goods and labor are on the rise. There is now a growing expectation that the Federal Reserve will raise interest rates to fight inflation.

While this doesn’t easily explain why inflation hedges like the BTC are falling today, Bitcoin is showing up correlation levels with shares of the S&P 500, as investing became more and more popular.

With the latest drop, Bitcoin has gone from a record $69,000 to $53,000 in just 23 days – a 22% drop, according to CoinGecko data. Ethereum, which also hit an all-time high 23 days ago, has retreated 14% in that period and now threatens to drop below $4,000.

Source: Decrypt

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