Bitcoin fell sharply after the sale of major US stock indexes. Bitcoin closely correlates with the price movement of the Nasdaq index.
Luke McGregor | Bloomberg | Getty Images
On Friday morning, Bitcoin continued to crater after a major sell-off in the U.S. on Thursday scared the cryptocurrency market.
According to Coin Metrics, bitcoin fell 9.1% to $ 35,900.25.
Other cryptocurrencies, including ether and XRP, have also declined sharply.
Cryptocurrency sales were triggered by a painful day on Wall Street when the Dow Jones Industrial Average lost more than 1,000 points on Thursday, making it the worst one-day drop since 2020.
The Nasdaq technology has fallen by almost 5%. Bitcoin continues to correlate with stock markets, and cryptocurrency is falling or rising in tandem with stocks.
“Overall, global markets have been intimidated by fears of growth, as we see. The Dow index was the worst fall since 2020, and all relevant risky assets followed suit, including the cryptocurrency, ”said Vijay Ayar, vice president of corporate development and international cryptocurrencies. The Luno exchange, CNBC said.
On Wednesday, the US Federal Reserve raised its base interest rate by half a percentage point. Further rising interest rates and tightening monetary policy have raised fears that the U.S. economy could enter a recession.
Ayar said bitcoin “lost a key level” when it fell below $ 37,500, and this could indicate a “movement much lower” in the next few days. He said bitcoin could quickly test a minimum of $ 30,000, and if the price falls below that figure, it could drop to $ 25,000.
“However, we may have seen some relief stocks, but there is no sign of a change in sentiment,” if Bitcoin is unable to find market support above $ 42,000, Ayar added.