Bitcoin and ethereum have dropped more than 10% over the last 24 hours, with bitcoin approaching $31,000 and ethereum trading near $2,300.
It’s been a shaky start to the week for Bitcoin and other cryptocurrencies, largely driven by ongoing macroeconomic uncertainty.
The crypto markets have been increasingly tracking the stock market, which has been trading in the red recently.
“The overall market has noticed the high correlation to Bitcoin prices and the general equities markets,” says Armando Aguilar, head of alternative strategies and research for Ledn, a digital asset savings and credit platform.
For weeks, the crypto market — like the stock market — has also been under pressure as investors grapple with continued surging inflation, the ongoing swirl of economic events stemming increasingly from Russia’s invasion of Ukraine, and tighter U.S.
The leading crypto started Monday on a weak note, trading at $30,900, down nearly 19% over the last week.
Bitcoin began to descend at the end of last week and continued to fall throughout the weekend, trading between a relative range of $33,000 and $37,000.
The institutional investor is paying close attention to bitcoin as many who got in last year are now losing money on their investment,” Edward Moya, senior market analyst at foreign-exchange brokerage Oanda, wrote in a market analysis.
“I tweeted this April 17, 2022: ‘I am getting 2021 April-May vibes, which means potential bearish until July.
Bitcoin’s high point of the year so far remains in the earliest days of January, when it nearly hit $48,000.
Ethereum’s price has been rapidly declining over the last few days, trading at $2,300 Monday.
But ethereum has also been grappling with anticipation for its massive software upgrade.
Ethereum developer Tim Beiko recently revealed that “The Merge” won’t happen in June as previously forecast, though it’s set still to happen sometime before the end of 2022.
That, along with several other macroeconomic factors, has made for a shaky start to the year for ethereum, which in January dropped below $2,200 — the lowest ethereum’s price had been since July 2021.
Most financial experts recommend investing less than 5% of your total portfolio in crypto.
If it seems like the crypto market has been acting increasingly like the stock market lately, it’s because it has been.
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