Bitcoin Plummets to $65,000 Amid Stock Market Turmoil: What You Need to Know
Quartz•2 weeks ago•
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Bitcoin Plummets to $65,000 Amid Stock Market Turmoil: What You Need to Know

Market Sentiment
bitcoin
cryptocurrency
markettrends
investing
techstocks
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Summary:

  • Bitcoin drops to $65,000, reflecting a 2.5% decline in 24 hours.

  • Hopes of breaking the $70,000 mark dashed.

  • Decline linked to pressures on technology stocks, particularly Tesla.

  • Yield on 10-year U.S. Treasury note rises to 4.23%, impacting equity valuations.

  • Other cryptocurrencies like Ether and Cardano also experience significant losses.

Bitcoin's Recent Decline

The cryptocurrency market is experiencing a downturn, closely mirroring the decline in the stock market. On Wednesday, Bitcoin saw a significant drop of over 2.5% in the past 24 hours, with its price hovering around $65,000. This decline has dashed hopes of breaking the $70,000 threshold, which had gained traction just a week prior.

Market Volatility and Interconnectedness

The downward trajectory underscores the growing volatility in the crypto market and highlights the interconnectedness between cryptocurrencies and traditional financial markets.

Factors Behind the Decline

The decline in Bitcoin can be attributed to mounting pressure on technology stocks, particularly Tesla. Analysts are anticipating that Tesla will report earnings per share of 60 cents, down from 66 cents a year ago, although this marks an improvement from 52 cents in the previous quarter.

Meanwhile, the yield on the benchmark 10-year U.S. Treasury note has continued its upward climb, reaching 4.23%, a level not seen since July. Higher bond yields traditionally create downward pressure on equity valuations, leading investors to favor safer investments like bonds over stocks.

Performance of Other Cryptocurrencies

Other significant cryptocurrencies have also faced losses:

  • Ether has experienced a decline of over 3%, currently trading around $2,500.
  • Cardano fell by more than 3.5%.
  • Avalanche dropped by over 4.5%.
  • The popular memecoin Shiba Inu decreased by approximately 3%.

Overall, the global cryptocurrency market capitalization has contracted by 2%, now standing at $2.2 trillion, according to data from CoinMarketCap.

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