Bitcoin Takes Heavy Loss As Crypto Market Drops 7%: Analysis
Bitcoin suffered heavy losses and Ethereum caught up in crypto trading on Friday as US stock prices also fell and the crypto market fell 7%. In today’s latest crypto news, we take a closer look at the price analysis.
It looks like crypto started trading the day after Thanksgiving, but today it looks even worse for crypto investors. Bitcoin is down more than 7% and Ethereum is down 8% on the last day. Solana, despite its strong rally, is surprisingly down 11% in the past few weeks and global crypto market capitalization is down nearly 7%. Only two coins in the big 20 remain unchanged and one is Terra, which is up 4% last day, and Polygon, which is up 2%.
And it’s not just cryptocurrencies that are struggling. US stock prices fell as well, and were in both an intraday and a weekly downtrend. NASDAQ is down 2.8% while the Dow Jones is down 0.9%, but who is to blame?
To the right of the bat, the Omicron-COVID variant threatens to land in California, but also worldwide. We were able to experience the same economic turmoil that we experienced when COVID didn’t start until it cut off the stock market while Bitcoin collapsed. Each procedure required a new cure, so we had lockdowns that led to stimulus tests that led to labor shortages, and shortly afterwards we saw some supply chain problems and everything was intertwined. As a result, the prices of goods and labor are rising, and expectations are now that the Federal Reserve will have to raise interest rates to fight inflation.
While it doesn’t necessarily explain why inflation risks like BTC are collapsing today, BTC shows some high correlation with S&P 500 stocks as investments become more popular. With its most recent decline, Bitcoin rose from a record high of $ 69,000 to $ 53,000 in just 20 days and is down 22%, according to Coingecko. Bitcoin took a heavy loss, but Ethereum was also hit hard, despite reaching an all-time high almost a month ago. It’s now down 15% and could drop below $ 4000, but if you want to check the real-time value of your BTC investment, you should check out our bitcoin price calculator.