Owing to the similarities between the US stock market and crypto market, the recent plunge saw Bitcoin drop to almost $45,000 as both the stock market and crypto market went all red.
Two days back, Bitcoin looked all set to recover with its price nearing $53,000 only to nosedive and plunged below $46,000 as the US stock market also continues to suffer.
Outside Bitcoin, the altcoin market had also not been spared. Ethererum struggles at $1,500 while BNB has been at $220.
Nexus between Bitcoin and US stock market
BTC after recovering from its week-long correction traded around $53,000 on Wednesday. It has, however, failed to double down on its gains and reversed the upward trajectory very quickly.
It led to price breaking below the strong $50,000 resistance level. Market bears continued pressuring during the week until the number one crypto coin dropped to $46,000 level.
At press time, Bitcoin has regained some momentum currently trading at $48,491 but still around 5 percent low from its all-time high price during the week. This is widely attributed to cryptos’ high correlation with the US stock markets which has been losing steam this week.
The most prominent US stock indexes, namely the Dow, NASDAQ and S&P 500 all closed in red for the larger part of the week after really high volatile trading.
Altcoin crypto market returns all red
After BlocDesk recently reported that the altcoin market has returned all green, and the crypto market regained momentum, the case is not the same again.
Altcoins followed Bitcoin south with substantial price declines. Ethereum led the with a 6 percent drop as the price went below $1,500. However, at press time, ETH now trades at $1,590.
Cardano (-5%), Binance Coin (-8%), Polkadot (-10%), Litecoin (-7%), Chainlink (-11%), and Bitcoin Cash (-7%) are also well in the red. Ripple is the only exception from the top ten as XRP has stayed at approximately the same price level
More losses are evident from PancakeSwap (-14%), Polygon (-12%), NEM (-11%), Basic Attention Token (-11%), Synthetix (-11%), Curve DAO Token (-11%), Fantom (-11%), Voyager Token (-11%), Algorand (-10%), and more.
Ultimately, the cumulative market capitalization of all cryptocurrency assets has decreased by $110 billion.