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Cryptocurrencies fell a day after a reversal in tech stocks pushed the S&P 500 and Nasdaq Composite to their highest peaks. Worst day since 2022.
Bitcoin It fell 2% on Thursday to $64,603.34, according to Coin Metrics. Disappointing quarterly earnings from Alphabet and Tesla late Tuesday weighed on other parts of the tech industry as investors fled riskier assets including cryptocurrencies.
“It’s clear that these setbacks have more to do with macro macro forces, with global financial markets in turmoil,” said Joel Kruger, market strategist at LMAX Group. “With weak economic data, subdued U.S. profits and ineffective central bank easing measures, Concerns about the health and outlook of the global economy have intensified. As a result, most major assets such as currencies, commodities and stocks have nowhere to hide.
The market is still in pain Ongoing Mt. Gox repayment plan This resulted in Continued round of Bitcoin selling pressure This month, he added.
at the same time, ether The newly launched Ethereum exchange-traded fund fell 6% to $3,172.59 in its third straight day of trading. this Grayscale Ethereum Trust (ETHE)ETFs converted to ETFs saw outflows of $484 million in the previous session.
“The current situation is the same as when the spot Bitcoin ETF was launched in January,” said Yuya Hasekawa, a cryptocurrency market analyst at Japanese Bitcoin exchange Bitbank. “Grayscale’s Ethereum Trust has long been trading at a discount, so Traders may have purchased some shares of the trust and are now selling spot ETH for arbitrage purposes – which is what happened to Bitcoin when the ETF started trading.
Bitcoin and other cryptocurrencies face pressure from stock market tech crash
Hasegawa said that while Bitcoin prices fell for weeks following the launch of the Bitcoin ETF in January, the launch of the Ethereum ETF is entering a different market and investors can look forward to potential positive news that could boost prices. .
Thursday marks the start of the Bitcoin 2024 conference, with investors looking forward to speeches by U.S. politicians from both parties supporting Bitcoin, as well as Donald Trump. In addition, market expectations for the Federal Reserve to cut interest rates in September are also increasing.
Cryptocurrency-related stocks also retreated as cryptocurrencies moved lower across the board. Coin Library fell 3%, while micro strategy down 2%. One of the most popular mining stocks, Iris Energy, fell 5%, while Anti-riot platform down 3%.
Kruger called the cryptocurrency space’s recent setbacks “a blip in a strong upward trend,” noting that Bitcoin and Ethereum are up 51% and 38% respectively so far this year, while the S&P 500 is up 14% during the same period.
