Interface News Reporter | Si LinweiThe cryptocurrency market, which has been rapidly rising recently, is experiencing a wave of correction.On April 21st, market data showed that the price of Bitcoin, the world's largest cryptocurrency, has fallen by 3
Interface News Reporter | Si Linwei
The cryptocurrency market, which has been rapidly rising recently, is experiencing a wave of correction.
On April 21st, market data showed that the price of Bitcoin, the world's largest cryptocurrency, has fallen by 3.4% to $28200 in the past 24 hours. Trading View data shows that Bitcoin and US dollar trading on the Coinbase Exchange fell to $27991 shortly before the US stock market closed, but subsequently rebounded.
Ethereum, the second largest cryptocurrency, also lost the $2000 mark and had a quote of $1942 as of the time of publication, failing to continue its previous upward trend. Last week, the price of Bitcoin briefly hit $31000, while Ethereum briefly reached $2100 after completing the "Shanghai" network upgrade.
The overall decline of cryptocurrencies led to a significant decline in related stocks on Thursday's US stock trading day. Among them, crypto mining stocks led the decline, with MarathonDigital (MARA) and RiotPlatforms (RIOT) stocks both falling about 10%, and Hut8Mining (HUT) falling 9%. Bitter Deer (BTDR), which just went public in the United States, fell 4.06%
The stock prices of Coinbase (COIN) and MicroStrategy (MSTR) on the cryptocurrency exchange have both fallen by more than 6%, with MicroStrategy currently holding over 140000 Bitcoins. The US stock market also showed a downward trend, with the Standard&Poor's 500 Index and Nasdaq Composite Index falling 0.6% and 0.8% respectively on the same day. The Dow Jones Industrial Average (DJIA) fell 0.3%.
There is no obvious inducing reason for the current correction of cryptocurrencies, but market analysts have provided some opinions.
Data shows that the US economic data released on Thursday morning showed some weakness. The number of first-time applicants for unemployment benefits increased by 5000 to 245000, higher than expected. The Philadelphia Federal Reserve's manufacturing index fell to -31.30 in April, with an expected reading of -19.2. Finally, the sales of existing homes in the United States decreased by 2.4% in March, with an expected increase of 5%.
There are still two weeks until the next meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve, and short-term interest rate traders are currently predicting a nearly 100% chance of another 25 basis point rate hike.
Mark Connors, the research director of Canadian crypto asset management company 3iQ, linked the decline in Bitcoin to regulatory issues in the United States and pointed out that "market liquidity still heavily leans towards Asia". In its 2023 Bitcoin outlook, the company emphasized: "With hopes for US regulatory orders fading and many participants prompting regulatory relaunches, we may be entering an integration period. Both are offsetting Bitcoin's long-term operation and structural gains.
Edward Moya, a senior market analyst at foreign exchange market maker Oanda, expressed a similar view by pointing out in an email that Bitcoin's recent decline occurred after the CEO of Coinbase stated that cryptocurrency exchange giants may have left the United States.
Edward Moya said, "If Coinbase leaves the US market, many US traders will leave because they may not feel confident in trading on decentralized exchanges, which means the global cryptocurrency market will shrink significantly. Until we have any regulatory clarity, Bitcoin will struggle here, which means prices seem to be falling
As of press release, the Bitcoin quote has come to $28252, while Ethereum quote is $1943.
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