Bitcoin (BTC) falls sharply as $126 billion wiped off crypto market
Following a decline in the major U.S. stock market indices, Bitcoin dropped sharply. Bitcoin’s price movements have closely been related to those of the Nasdaq.
Luke MacGregor | Bloomberg | Getty Images
BitcoinOn Thursday, the crypto market suffered a severe shake-up after a large stock selling in the U.S.
Bitcoin fell more than 8 percent to $36,251.50 at 4:03 AM on Friday. According to CoinDesk data, ET. Before paring down some of the losses, Bitcoin fell below $36,000 Thursday.
In a span of 24 hours, $129 billion worth of cryptocurrency was removed from the market. This happened at 4:03 AM. According to CoinMarketCap data, ET.
An awful day at Wall Street caused the sale of cryptocurrency to be sparked. Dow Jones Industrial Average lost more than 1,000 pointsOn Thursday, it was the worst day of single-day drops since 2020.
Technology-heavy Nasdaq fell nearly 5%. Bitcoin is still closely related to equity markets. The cryptocurrency fell or rose in tandem with stock prices.
Global markets were spooked by growing fears, as you can see. CNBC’s Vijay Ayyar spoke out as vice president for corporate development at Luno and an international representative of crypto-exchange Luno. The Dow suffered its largest drop since 2020.
The benchmark for the U.S. Federal Reserve was raised Wednesday by the Federal Reserve interest rate by half a percentage point. There are fears of further rate rises and tightening in monetary policy. U.S. economy could go into a recession.
Ayyar stated that bitcoin lost a “key level” after it dropped below $37500, and this could signal a “move much lower” over the coming days. His prediction was that bitcoin would test the $30,000 mark soon, and that if it falls below that price it will drop to $25,000.
Ayyar said that there could be relief rallies, but not enough to suggest a shift in sentiment, unless bitcoin can find support in market above $42,000.