On the 7th of December, after investors continued to sell risk assets as a result of negative news from bank bosses, the leading cryptocurrencies, Bitcoin, Ethereum, and Dogecoin, plummeted along with the stocks. According to data from CoinGecko, Bitcoin, the largest cryptocurrency by market capitalization, decreased around 1.2% over the past 24 hours. It is currently, as of this writing, trading at around $16,813.
Earlier this day, BTC faced a drop from $17,046 to $16,750 in just two hours, which it had never experienced since the end of November. And the rest of the crypto market is also following the same trend as BTC follows and is trading at a loss. The reason behind this price drop is related to recession forecasts and job cut announcements from top bank chiefs. These announcements not only affected the price of cryptocurrencies but also led traders to sell stocks. For example, the Nasdaq 100 was down 2% over the past day, while S&P 500 was on set for its fourth losing day.
This year, all the cryptocurrencies have largely been correlated with US equities. As when the Federal Reserve raised interest rates to get 40-year high inflation under control, several investors sold so-called risk assets, such as cryptocurrencies, tech stocks, and other digital assets. And these investors moved towards heaven assets like the US dollar. And when the Fed has shown signs of slowing down its aggressive monetary policy, the value of stocks along with cryptocurrencies increased.
On the other hand, Ethereum, the second-largest cryptocurrency by market cap, decreased more than 2% over the past 24 hours. According to data from CoinGecko, ETH is currently, as of this writing, trading at around $1,229. And Dogecoin, the leading meme coin, and Elon Musk’s favorite, also plummeted more than 4% over the same period. DOGE, the eighth largest digital asset, is currently trading at around $0.095, as per data from CoinGecko.