Bitcoin Falls 8% As $126 Billion Disappears From The Cryptocurrency Market

Bitcoin fell sharply after the sell-off of major US stock indices. Bitcoin has a close correlation with the price movement of the Nasdaq Index.

Luke McGregor | Bloomberg | Getty Images

Bitcoin erupted on Thursday as a massive sell-off in the US terrified the cryptocurrency market.

Bitcoin fell more than 8% to $36,251.50 around 4:03 a.m. Friday, according to CoinDesk data. On Thursday, Bitcoin fell below $36,000 before offsetting some of these losses.

Other cryptocurrencies, including Ether and XRP, also plummeted.

According to data from CoinMarketCap, approximately $129 billion worth of cryptocurrencies disappeared from the cryptocurrency market in 24 hours as of 4:03 AM EST.

Crypto sales were triggered on a painful day on Wall Street on Thursday, when the Dow Jones Industrial Average fell more than 1,000 points, marking its worst one-day drop since 2020.

The tech-focused Nasdaq fell nearly 5%. Bitcoin has been correlated with the stock market as cryptocurrencies have either gone up or down with stocks.

Vijay Ayyar, Vice President of Crypto Corporate Development and International, said: “Overall, the global market is terrified of growth fears as we can see. The Dow experienced its worst decline since 2020 and all associated risks, including cryptocurrencies. The underlying assets followed,” he said. He told CNBC he exchanged Luno.

On Wednesday, the US Federal Reserve raised its benchmark interest rate by 0.5 percentage points. Further rate hikes and tightening monetary policy have raised fears that the US economy could plunge into recession.

Ayyar said Bitcoin “has lost its core level” when it fell below $37,500, which could indicate “much lower movement” over the next few days. He said that Bitcoin could soon test a low of $30,000 and could drop as low as $25,000 if the price drops below that.

However, if Bitcoin cannot find market support above $42,000, “however, we may see some relief rallies in the meantime, but nothing indicative of a shift in sentiment,” Ayyar added.


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