According to Bloomberg News, it was seen that cryptocurrency sell-offs gathered momentum Monday, as Bitcoin tumbled to a 6-month low, while other digital tokens suffered bigger losses.
Bitcoin nosedived by as much as 6.6% and dropped beneath the $34,000 mark, consistently over six days at a stretch. Ether manifested retreat by 7.6% and touched $2,201, which was the lowest gain since July.
With Solana’s SOL and with Cardano’s ADA nose-diving 19% and 13% respectively, across the spectrum of crypto, the markets were in “a sea of red”. CoinGecko compiled this data, reports Bloomberg News.
In the recent few days, crypto has been under widespread selling pressure, while the traders continue to point to the hawkish approach of the Federal Reserve. Another reason for the traders to withdraw from risky trading includes a selloff in technology shares. Ever since Bitcoin attained an all-time high way back in November 2021, it has dropped by more than 50%.
Mark Haefele, the chief investment officer associated with UBS Global Wealth Management, thinks that it is not bad if the more speculative corners of the markets lose some due to market volatility.
According to Bloomberg News, the 40-day correlation coefficient related to the digital token NASDAQ 100, which is tech-heavy, has attained approximately 0.66%, which is the maximum data that has been gathered by Bloomberg since2010. A similar correlation with S&P 500 is in the record as well.
In the premarket trading, the cryptocurrency exposed stocks were seen to be tumbling. MicroStrategy Inc dropped by about 12%, while Marathon Digital Holdings Inc and Riot Blockchain Inc, which are Bitcoin miners dropped the same amounts.
Head of research working with Pepperstone Financial Pty Ltd, Chris Weston stated that the sector is grossly oversold at the moment, however, as is being observed the momentum points towards the downside and it is quite likely that the rallies will be sold.
