Numerous bad news, uncertain macro environments, and broader cooling of the crypto market remain. Bitcoin When Ethereum With a dump.
Bitcoin has fallen by more than 10% in the past week, despite reaching a local high of around $ 44,600 on March 1. However, since then, major cryptocurrencies have been on a downtrend, trading at around $ 38,800.
Ethereum, the second largest cryptocurrency, is not so good.
Ethereum fell almost 12% in the same period as it fought to continue to exceed the psychologically significant price of assets, $ 2,500. Like Bitcoin, it was bullish at the beginning of the month and Ethereum temporarily exceeded $ 3,000 on some occasions.
At the time of the press, Bitcoin was trading at $ 38,850 and Ethereum was trading at $ 2,576, according to data drawn from CoinMarketCap. Both assets are down about 45% from the record highs set in November.
Few of the top 10 cryptocurrencies have escaped the bearish genocide last week. Terra, the blockchain network behind LUNA and the popular Stablecoin UST, is down 9.5%.
Solana When CardanoBoth are marketed as what appears to be “Etherium Killers”, but have declined by more than 12% and more than 15%, respectively. avalanche It also decreased by 14.8%.The hype dog coin Dogecoin When Shiba Inu Both have decreased by almost 10%.
Since March 1, the cryptocurrency market as a whole has fallen by $ 222 billion and today it has fallen from about $ 2 trillion to $ 1.74 trillion.
What is driving the pricing behavior of Bitcoin and Ethereum?
The strongest headwinds that hold Bitcoin and Ethereum in place revolve around Russia’s ongoing invasion of Ukraine.
Both assets Prompt donation to the Ukrainian governmentClose correlation with traditional financial markets has hampered growth.
Following the February 24 invasion, CoinMetrics Bitcoin and S & P500 were down Significantly. However, since March 2, this correlation has recovered to some extent, indicating that the two markets are approaching at the lock step.
Also, when looking at the price performance of indexes such as the S & P 500, Dow Jones, Nasdaq, etc., the close relationship with cryptography can mean further pain for Bitcoin and Ethereum.
According to Bloomberg data, the three major indices have fallen 2.95%, 2.37% and 3.62% in the past week.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
