While BTC has dropped in both its price and market cap, other top cryptocurrencies including Ethereum (ETH), XRP, and Litecoin (LTC) are amongst others.
The price of Bitcoin (BTC) has seen rapid retracement in the past days as the entire cryptocurrency market was caught in a sell-off frenzy. Following this sell-offs, the price of bitcoin has broken the $10,000 support level and it traded at $9,990 in the early hours of Friday.
The generally observed Bitcoin (BTC) price has made two extreme moves in barely 72 hours. While the coin rose as high as $12,000 on Tuesday, it is currently trading at $10 452.06, down by about 7.31% in the past 24 hours. The price fluctuation has been attributed to many factors of which the Chicago Mercantile Exchange Gap is tagged.
BTC Retracement Tags Other Cryptocurrencies Along
The drop in the price of Bitcoin (BTC) usually has a ripple effect on the rest of the market. While BTC has dropped in both its price and market cap, other top cryptocurrencies including Ethereum (ETH), XRP, and Litecoin (LTC) are amongst others.
Ethereum has lost 7.26% in the past 24 hours. While still ranking as the second-largest cryptocurrency, the coin has increased by about 129.3% year to date.
XRP and LTC also took a harsh bearish dive recording a 3.95% as well as a 9.53% drop in the past 24 hours respectively.
The BTC price retracement and sell-offs have also impacted the boosted run of DeFi platforms including Aave and Compound. Each of the governance tokens of these two platforms LEND, and COMP has seen at least a 9% drop in their value in the past 24 hours.
Making a Case for the Price Drop with the Stock Market
As a tradable asset, the cryptocurrency market has been seen to be largely correlated with the United States Stock Market. At the turn of September, Wall Street saw many upticks in the key indices and stocks. These new highs recorded correlated with the sharp highs Bitcoin (BTC) saw at the same time. The Dow Jones Industrial Average rallied to gain 450 points to close at a new high of 29,100.50 since February.
Similarly, the S&P 500 also added 1.5% to end the day at 3,580.84 and the Nasdaq Composite (INDEXNASDAQ: .IXIC) closed at 12,056.44 representing a 1% growth.
While the cryptocurrency market led by BTC is retracing today, the stock market seems to be experiencing a huge sell-off as well. The Dow Jones Industrial Average has lost 807.77 points to erode the earlier gains at the opening of the trading week and the same applies to the S&P 500 with a 125.78 drop in points.
The drop in the price of BTC and other digital currencies has also been correlated with the drop in the share price of the U.S. top tech firms including Tesla Inc (NASDAQ: TSLA) with a $40.37 loss in its share price, Apple Inc (NASDAQ: AAPL) losing $10.52 and Boeing Co (NYSE: BA) seeing a $6.01 drop in the past 24 hours.
The drop in these share prices correlates remarkably with the BTC retracing and perhaps a rebound can be seen across both the stock market and the cryptocurrency market.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
