On Thursday, the cryptocurrency market experienced another rollercoaster day, with some coins falling. An example of this is Bitcoin which fell 5.9% to $39,432 when writing these words.
The bitcoin market is still bearish, with prices dropping below $40,000 today. This comes after a lot of positive news about US President Joe Biden’s executive order, which is likely to focus more on the crypto sector.
The crypto markets didn’t look very promising today, with Bitcoin falling sharply and many other coins falling as well. For example, Ether, the second-largest cryptocurrency, fell a whopping 4.4% to $2,589.
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It’s too early to say if this will have any long-term effects on the industry, but the market has already seen enough sell-offs where people may want to invest in other cryptocurrencies or even just gold until things settle down.
Bitcoin rose a whopping 11% on Wednesday after an executive order from Biden that appears to paint digital assets in a positive light. Those gains proved ephemeral, however, and traders quickly realized the news fell short of their expectations.
Bitcoin is trading around $39,000 with a 6.% drop | Source: BTC/USD chart on Tradingview.com
As a result, Bitcoin is once again trading near the average price of the past two months ($39,000).
The cryptocurrency markets have not been immune to the bearish trend that has plagued US stocks in recent weeks. As a result, Bitcoin’s price fell another leg, reflecting developments in traditional financial markets, just as futures on both the S&P 500 and Nasdaq 100 indices turned negative at the same time. This is not surprising as cryptocurrencies are closely correlated with major indices such as SP500 or NDX100.
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Bitcoin performance relative to others
It has been a difficult year for cryptocurrencies thus far, with Bitcoin outperforming Ethereum and falling 17.6%, while NASDAQ fell 17.1%. However, in 5 days, BTC has continued its strong performance against Ethereum but underperformed against NASDAQ.
on March 9, Google searches for “Bitcoin” shot up dramatically, but in the past 24 hours they have stabilized and dropped slightly. Trading volume also fell, resulting in BTC crashing below $40,000 per coin.
According to a recent survey, most people think Bitcoin will be worth more than $60,000 by the end of 2022. However, there is a lot of fear right now around Bitcoin crashes and the possibility of regulation. Only 5% of people surveyed by JPMorgan believe that BTC will be worth more than $100,000 by the end of 2022.
Featured image from Pixabay, chart from Tradingview.com