Almost $98 Billion Evaporated in the Crypto Space Triggered by a Big Sell-Off in the Global Stock Market

Bitcoin (BTC) plummeted below the psychological price of $30,000 in the last 24 hours for the second time since mid-May. As a result, the entire crypto market found itself on the receiving end because about $98 billion has been evaporated.

A major sell-off was witnessed in the global stock market

According to Annabelle Huang, a partner at Amber Group said:

“There’s been a broad sell-off in global markets, risk assets are down across the board.”

The stock market plummeted on July 19 as Dow Jones Industrial Average experienced its worst day since October last year.

Huang added:

“Coupled with recent BTC (Bitcoin) weakness, this just sent the crypto market down further.”

The plunge in BTC was triggered by the large sell-off in the stock market as the leading cryptocurrency was down by 5.66% in the last 24 hours to hit $29,864 during intraday trading, according to CoinMarketCap. Bitcoin has not been trading below $30K since June 22.

Other top cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Ripple (XRP) were also down by 7.7%, 11.78%, 10.05%, and 8.83%, respectively.

Bears calling ahead

Jehan Chu, the founder of crypto-based venture capital and trading firm Kenetic Capital, stated:

“All signals are red as BTC (bitcoin) continues to be weighed down by China’s ultimate crypto ban and worsening macro economic conditions from a surge in covid variants.”

China’s intensified crackdown on crypto mining starting in May, which sparked low volatility in this sector. Anhui, an eastern Chinese province, became the latest region to shut down all crypto mining activities, citing an acute power shortage.

As Bitcoin mining continues being unwelcome on Chinese soil, the United States has emerged as the biggest beneficiary because this industry seems to be shifting from the East to the West. 

Image source: Shutterstock


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Stock Market Responds Positively to President Joe Biden’s Inauguration, but what about Bitcoin and Ethereum?

A new governance era has unfolded in America with the inauguration of Joe Biden as the 46th US President. Along with the official welcoming into of President Biden, the entire stock market has been responding positively.

The major stock market indices recorded new daily highs with Dow Jones Industrial Average surging 0.83%, the S&P 500 gaining 1.39% and the tech-focused Nasdaq Composite surged by 1.97% to $13,457.25.

While the growth of these indices at yesterday’s close of trading showed overall strength in the market, the cryptocurrency markets, led by major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), have failed to record a complementary growth.

According to CoinMarketCap, Bitcoin is down 1.83% over the past 24 hours, continuing its downward run as indicated by the 7.93% dip over the past week. Although Ethereum is down by 3.16% to trade at roughly $1,310, dampening hopes of surpassing its recent all-time high (ATH) price of $1,400, the second-biggest cryptocurrency is better off compared to Bitcoin, as it has undergone a weekly gain of16.95%.

The US stock market, in comparison, has seen impressive runs in the build-up to the inauguration ceremony. These rallies were fueled by major market players hoping to benefit from the COVID-19 stimulus package deals the new President will implement, with trillions of dollars expected to be injected into the economy to counter the damage caused by the pandemic.

Crypto markets are also bound to benefit from the rollout of the stimulus packages as the excess money printing of the US dollar will be a boost to both institutional and retail investors who will want to preserve their wealth and hedge against the impending inflation that is set to be ushered in.

At a price of $34,383 per coin, Bitcoin is way below its all-time high price of approximately $42,000 but expectations remain bullish that the Biden presidency will bring long-term growth to Bitcoin and the cryptocurrency ecosystem as a whole.

Image source: Shutterstock


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Bitcoin (BTC) $ 27,041.25 2.45%
Ethereum (ETH) $ 1,655.99 2.97%
Litecoin (LTC) $ 65.24 2.63%
Bitcoin Cash (BCH) $ 236.48 0.86%