Bitcoin lost 21% of its value in one week

It is becoming a recurring fact: when stock exchanges sink, bitcoin does worse; when there is euphoria in the markets, bitcoin sets new records. This is what has been happening in these weeks.

The correlation between the trend of cryptocurrencies and stock markets is increasingly evident and for analysts it is now a certainty. In these hours, just as has happened in recent days, with the European markets in deep red and the futures on Wall Street all negative, bitcoin loses 5.66% and slips to $ 33,685, the lowest value since last June.

With these data, the cryptocurrency has almost eliminated all the earnings recorded by January 2021, when it stood at around $ 33,000.

In the last 7 days the price of bitcoin has lost 21%: it is one of the largest sell-offs in the history of cryptocurrencies, perhaps second only to that of 2017, when in just over a month it went from $ 20,000 to $ 10,000, before falling back to $ 3,000 at mid-year.

All other cryptocurrencies sink, with Ethereum losing 9.81% to $ 2,256, Binance Coin loses 9.78% to $ 345, Cardano 11.47% to $ 0.99.

But it is the whole cryptocurrency sector that is sinking. Market capitalization across the industry has lost 7.28% in the past twenty-four hours to $ 1.54 trillion. As for individual cryptocurrencies, Bitcoin falls to 639 billion, Ethereum to 268 billion.

Everything suggests that the mood will remain negative in the coming days and experts are expecting more sales in the next few hours. Especially if the markets were to continue, as expected, their ‘no’ moment.

There are fears among investors, and at this point also among those who invest in cryptocurrencies, due to the feared Federal Reserve tightening of its interest rate policy: information on the next moves by the US central bank could arrive from the meeting on Wednesday.

One fact is certain: bitcoin and other cryptocurrencies are no longer an asset class in their own right, isolated from the rest, but meet expectations, to the fears, to the enthusiasm that cross the markets. At this moment, there are fears of the Fed meeting and what could ensue, and investors are fleeing the riskiest assets: cryptocurrencies, but also all those companies listed on Wall Street that base their business on cryptocurrencies and the blockchain.

A few examples: Coinbase in the Wall Street premarket loses 8% (after losing 16% on Friday); Riot blockchain loses 9% (-15% Friday); Marathon Digital Holdings 8.9% (-11% Friday). But the list is very long, and all in one direction.

By Editor

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