Bitcoin Tumbles Below $36K, Altcoins In Red Too
07 May 2022 - 12:00AM
NEWSBTC
The crypto market has turned red even after the latest FOMC
meeting. Bitcoin inches towards the $35,511 mark, and altcoins are
getting a beating too. Bitcoin responded to the Federal Reserve’s
50 basis-point interest rate hike by dropping more than 10% in one
day, its most significant decline in two months. Related Reading |
Cardano Prepares For Major Update, Will It Be Enough To Push Bears
Back? Most of the crypto market was up early today, with bitcoin
hitting $40,000 after yesterday’s Federal Reserve meeting. Other
cryptocurrencies that performed well in the early hours are
Cardano, Solana, Polkadot, and Avalanche. The afternoon market
dived, and all cryptocurrencies, including Bitcoin, recorded a
significant decline. BTC fell 10%, while altcoins also saw a
considerable fall. The second-largest cryptocurrency Ethereum
fell by 7.8%; other altcoins also had a major decline. For example,
DOGE had dropped 5.4% in the last 24 hours while SAND was down
11.8%. As the cryptocurrency landscape was bearish last week
following a rejection at $40,000, it quickly returned below that
level and kept losing value. This resulted in an almost two-month
low of under $35,511 per coin. Yesterday, it was reported that the
asset failed to stay above $39,000 and eventually fell below
$38,000 again. Bitcoin was trading at around $38,500 before the
FOMC meeting. The Fed Chair Jerome Powell said the institution
would raise the interest rates by 50 basis points (instead of the
expected 75). This news caused the stock market to go up.
Bitcoin also jumped to an intraday high of $40,000. As per Jarvis
Labs: (…) the fair price scanner started showcasing potential local
bottoming after alerts last night. However, they predict
FOMC/trad-fi is more likely to play along for a market relief
current week. Any slight dovishness sign and we might see the
follow-up. And if not, then further crab or a drop hard. Volatility
could go either way. U.S Stock Market Affecting Bitcoin Price
Unfortunately, the stock market could not hold the spike and
started a downtrend. Bitcoin also followed the US stock rally and
lost more than 10% of its value. This brings its total market cap
above $692.6 billion. Cryptocurrencies are being affected by the
same trend as stocks. Investors seem to be selling off their
stocks, causing a “risk-off” trade. This has caused the market for
cryptocurrencies to go down sharply. Despite the several positive
news like a DDoS attack against a cryptocurrency busted, Congress
is considering allowing companies to include cryptocurrencies in
their 401(k) plans; the falling stock market is pulling
cryptocurrency values down with it. In addition, the volatility of
tokens means that when the stock market goes down, the losses are
generally more severe in the crypto market. Related Reading | One
Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match
Up Cryptocurrencies are constantly changing. Thursday’s changes
seem regular. People who invest in cryptocurrencies might
understand that the value of these investments can go up and down
drastically. However, as things stand, what has changed in the last
six months is that stock market values have started affecting
cryptocurrency values. Featured image from Pixabay and the chart
from Tradingview.com
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