Black Friday was last week, but yesterday looked even darker for cryptocurrency investors. Both BTC and ETH made heavy losses during trading on Friday, and US stock prices also fell.
Next Black Friday, what’s to blame?
BTC fell more than 7% in 24 hours, ETH fell more than 9% and Solana lost 12% of its price. Overall, the global market capitalization of cryptocurrencies has fallen by more than 7%. Only two coins in the top 20 managed to stay in the green – Terra, an increase of 4% in 24 hours, and Polygon, which increased its price by 2%.
It wasn’t just cryptocurrencies. After a solid start to the day, US stock indices continued their downward trend. The Nasdaq fell 2.8% yesterday, while the Dow Jones is 0.9% lighter. What does it cost?
There is a threat posed by the COVID-19 Omicron variant, which has reached the mainland in California. Recall that economic uncertainty came after COVID’s first foray into the United States in March 2020, undermining the stock market while knocking BTC to just over $ 4,000.
Each action elicited a new response. Lockdowns led to stimulus checks, which led to labor shortages and supply chain problems. As a result, the prices of goods and labor rose. The Federal Reserve is now increasingly expected to raise interest rates to fight inflation. Although this does not convincingly explain why inflation hedges such as BTC are declining, the situation points to a high level of correlation between BTC and S&P 500 shares, as investments in cryptocurrencies become increasingly mainstream.
With the latest drop, BTC fell from a record high of $ 69,000 to $ 53,000 in just 23 days, a drop of more than 24%. ETH, which also reached its all-time high 23 days ago, has fallen 14% over the period and now threatens to fall below $ 4,000.
It’s starting to look like September 2021
An analyst and pseudonymous Twitter user “Rekt Capital”, who published graph showing this latest decline along with the decline that occurred in September 2021.
Rect Capital said
“In September, BTC withdrew by 25%. Then he bounced back to the new ATH. Now the BTC has fallen by 24%. It is likely that the Fear and Gread Index will soon enter the zone of extreme fear as in September. Similar retracement depth. Similar investor sentiment.”