Bitcoin and Ethereum continue to fall as losses worsen in the crypto market

Bitcoin and Ethereum continue to fall as losses worsen in the crypto market

Not content with simply erasing its recent gains, the price of Bitcoin today continued its decline to its lowest point since late February.

8% drop in just 24 hours, Bitcoin fell below $36,000 before stabilizing. It’s a similar story for the crypto market as a whole, which lost 7% in the same period; Ethereum lost 7% from yesterday’s price, and the rest of the top 10 suffered losses of between 5% and 9%.

Just yesterday, crypto asset prices were noticeably higher, rising along with stocks on Wednesday after the Federal Reserve announced an interest rate hike slightly lower than many traders expected.

The Dow Jones Industrial Average posted a 2.8% gain while the Nasdaq tech-stack posted a 3.2% increase.

But that was a whole day ago.

The Dow Jones and the Nasdaq fell 3.1% and 5% respectively today. For the Dow, that meant its biggest daily gain since 2020 was followed by its biggest daily loss since 2020. The gist of the story is that traders reacted with relief yesterday that the Fed’s inflation measures had been measured before realizing today that the 0.5 percentage point increase in interest rates are still very high by historical standards.

Things are less drastic on the cryptocurrencies front, accustomed to volatility.

After starting the year at $46,700, Bitcoin has oscillated up and down while rarely returning above that mark. It is now down more than 21% for the year, according to data from CoinMarketCap.

Its losses mirror those of stocks, specifically stocks of technology companies. Alphabet, Google’s parent company, has lost almost 20%, Microsoft has lost 17% of its stock price and Facebook’s Meta has suffered a 34% discount since the start of the year.

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