On Thursday, the cryptocurrency market experienced another roller-coaster day, with some coins declining. One such example is Bitcoin which fell 5.9% to $39,432 when writing these words.
The bitcoin market is still bearish, with prices dipping below $40,000 today. 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.
The crypto markets were not looking very promising today, with Bitcoin declining heavily and many other coins dropping as well. For example, Ether, the second-largest cryptocurrency, fell as much as 4.4% to $2,589.
Related Reading | TA: Ethereum Trims Gains, What Could Spark A Fresh Increase
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 as much as 11% on Wednesday following an executive order from Biden that appears to frame digital assets in a positive light. However, those gains proved fleeting, and traders soon realized the news didn’t live up to their expectations.
Bitcoin trading around $39,000 with 6.% decline | Source: BTC/USD Chart on Tradingview.com
As a result, Bitcoin is once again trading near its average price over the recent two months ($39,000).
The cryptocurrency markets were not immune to the bearish trend that has plagued US stocks over recent weeks. 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. This is not surprising, considering how closely correlated cryptocurrencies are with major indices like SP500 or NDX100.
Related Reading | TA: Bitcoin Corrects Gains, Why Dips Could be Attractive In Short-term
Bitcoin Performance Against Others
It’s been a rough year for cryptocurrencies thus far, with Bitcoin outperforming Ethereum and falling 17.6% while NASDAQ has dropped 17.1%. However, in 5 days, BTC has continued its strong performance against Ethereum but underperformed against NASDAQ.
On March 9th, Google searches for “Bitcoin” shot up dramatically, but in the last 24 hours, they’ve steadied and declined slightly. The trade volume, too, went down, resulting in a crash of BTC below $40,000 per coin.
According to a recent survey, most people think that Bitcoin will be worth more than $60,000 by the end of 2022. However, there is a lot of fear right now surrounding Bitcoin crashes and the possibility of regulations. Only 5% of people surveyed by JPMorgan believe that BTC will be worth more than $100,000 by the end of 2022.
Featured image from Pixabay, chart from Tradingview.com