Bitcoin posted heavy losses and ethereum followed during the Friday cryptocurrency trading, as the US stock prices also crashed and the crypto markets dropped by 7%. In today’s latest cryptocurrency news, we are taking a closer look at the price analysis.
It seems that crypto was on sale the day after Thanksgiving but today it looks even worse for crypto investors. Bitcoin dropped more than 7% in the past day and ethereum crashed by 8%. Solana surprisingly crashed by 11% despite its surging the past few weeks and the global crypto market cap dropped by nearly 7%. Only two coins in the top 20 managed to stay in the green and one is terra that increased 4% in the past day and Polygon got a boost by 2%.
And it’s not just crypto that is having a rough time. The US stock prices also crashed and are all in a downtrend for the day and for the week. The NASDAQ is off the pace by 2.8% while the Dow Jones is trending 0.9% lighter but who is to blame?
Right of the bat, there’s the threat posed by the Omicron COVID variant that made landfall in California but also across the globe. We can see the same economic uncertainty that we saw when COVID only started as it cut off the stock market while Bitcoin crashed immensely. Each intervention required a new cure so we had lockdowns that led to stimulus checks, these checks led to labor shortages, then right after we saw some supply chain issues and everything was intertwined. As a result, the prices for goods and labor are increasing and now there is this expectation that the Federal Reserve has to raise the interest rates to fight against inflation.
While it doesn’t necessarily explain why the inflation hedges like BTC are crashing today, BTC is showing some high correlation levels with the S&P 500 stocks because the investments are turning more and more mainstream. With the latest drop, Bitcoin went from a record high of $69,000 to $53,000 in just 20 days and a drop of 22% according to the data from Coingecko. Bitcoin posted heavy losses but Ethereum got hit hard as well despite posting an all-time high almost a month ago. Now it receded by 15% and could drop below $4000 but if you want to check the real-time value of your BTC investment, make sure you check out our Bitcoin price calculator.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]