Ash Crypto sheds light on various factors that are affecting the crypto market. The price of Bitcoin and various cryptos has been going down based on various interconnected events.
Bitcoin, Ethereum, and Solana have dipped by more than 7%, 11%, and 10% respectively in the past 4 days.
What you'll learn 👉
Stock Market Correlation Triggers Crypto Selloff
According to Ash Crypto’s post, the main reason for the market decline is that it is strongly connected to the traditional stock market. The past two days have been disappointing, with poor quarterly reports from Alphabet and Tesla affecting the overall market.
Based on a post by Ash Crypto, one of the major reasons for the crypto market dip is the decline of the stock market. There are poor quarterly reports from Alphabet and Tesla.
This downturn has also affected the price of the S&P 500 and Nasdaq. They both saw their most severe price fall since September 2022. The seven largest companies had a dip of around $500 billion. The entire US stock market lost around $1.1 trillion.
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During this period, the price of Bitcoin fell below $64,000. Ethereum also saw a more significant decline, experiencing a more severe price drop.
Mt. Gox Bitcoin Distribution Adds to Market Pressure
Bitstamp’s ongoing 35,000 BTC distribution is also affecting the price of the token. Anticipation of up to $2.25 billion worth of BTC in the crypto market is causing selling pressure.
Typically, in this case, many people start to take their positions for fear of a price drop. This price in itself makes the price drop more.
Ethereum Faces Additional Challenges
There has also been a major ETH outflow from the Ethereum network. This also has created a major negative sentiment in the market, increasing the selling pressure.
The price direction of Ethereum affects many other altcoins, making the price drop.
Despite all these, Ash Crypto is hopeful that the long-term direction of the market is still bullish. He believes the downturn is only a temporary dip and expects a recovery soon.
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