The cryptocurrency market, particularly Bitcoin and Ether, is experiencing a significant drop in prices. Bitcoin is down over 3% to around $79,000, its lowest since November 2024. Ether has also fallen by as much as 6% to $1,756, hitting a low not seen since October 2023. This decline was mainly influenced by a major sell-off in the US stock market, with the Nasdaq 100 Index having its worst day since October 2022, dropping nearly 4%.
President Trump’s policies sparked trade war and recession fears, leading to a sharp market decline wiping out $4 trillion from the S&P 500’s peak in February. Notably, he ordered the establishment of a US Bitcoin reserve and a token stockpile ahead of a crypto summit in Washington, yet market sentiment appeared unaffected by these initiatives.
Joshua Lim, co-head of markets at FalconX Global, discussed the cryptocurrency market. He noted that with the strategic Bitcoin reserve executive order, one positive catalyst is removed from pricing in. Lim also highlighted the increasing correlation between Bitcoin and equities, reminiscent of the 2024 yen carry trade unwind.
In the recent market sell-off, ETFs tied to digital assets and crypto themes saw significant losses, with two leveraged Strategy ETFs, linked to Bitcoin-holding company now known as MicroStrategy, dropping over 30%. This underscores how the equity market decline is affecting cryptocurrencies and associated investments.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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