The cryptocurrency market was experiencing another roller coaster ride on Thursday with some coins falling. Bitcoin was one such instance. It fell 5.9%, to $39.432 at the time I wrote these words.
Bitcoin prices are still down, and currently trade at $40,000 below their current levels. This comes after a slew of positive news about US President Joe Biden’s executive order that will likely focus more on the crypto sector.
With Bitcoin falling sharply and several other currencies dropping, the crypto markets did not look very bright today. Ether, second-largest cryptocurrency fell 4.4% to $2589.
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It’s still too early to tell if this will have any long-term effects on the industry, but the market has seen enough sell-offs already where people might want investments in other cryptocurrencies or even just gold until things calm down again.
Bitcoin rose by as high as 11% following an executive order issued Wednesday by Biden. This appears to have framed digital assets positively. However, those gains proved fleeting, and traders soon realized the news didn’t live up to their expectations.
Bitcoin has been trading at a price that is close to its average over the past two months ($39,000).
Unfortunately, the bearish trend in US stocks has continued to affect cryptocurrency markets. As a result, Bitcoin’s price took another leg lower, mirroring developments in traditional financial markets just as futures on both S&P 500 and Nasdaq 100 indexes turned negative sound the same time. Given how tightly cryptocurrencies are correlated with major indices, such as SP500 or NDX100, this is no surprise.
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Bitcoin Performance Against Other
It’s been a rough year for cryptocurrencies thus far, with Bitcoin outperforming Ethereum and falling 17.6% while NASDAQ has dropped 17.1%. BTC, however, has shown a strong performance in the past 5 days against Ethereum, but it’s underperformed against NZXT.
On March 9th, Google searches for “Bitcoin” shot up dramatically, but in the last 24 hours, they’ve steadied and declined slightly. BTC crashed below $40,000 due to a drop in trade volume.
A recent poll found that most people believe Bitcoin will surpass $60,000 in value by 2022. But there are many concerns right now about Bitcoin crashes, and possible regulations. JPMorgan found only 5% who believe BTC will exceed $100,000 by 2022.
Featured image taken from Pixabay. Chart from Tradingview.com