Bitcoin falls in tandem with the stock market By DailyCoin

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Bitcoin falls in tandem with the stock market

The stock market fell sharply on Thursday, erasing gains made in the previous rally, buoyed by the historic decision by the US Fed to raise interest rates. and the cryptocurrency market as a whole declined in sync, losing 7.5% of total market capitalization in the span of 24 hours.

The largest US stock index, which tracks the performance of 500 major companies, the S&P500, fell 4%. Technology-focused companies also saw a 5.1% decline, marking the biggest daily decline since late January.

The dominant crypto, Bitcoin (BTC), quickly followed suit, dropping 10% and falling from $39,542 to $35,871 in 6 hours. The drop marked the biggest drop in the price of Bitcoin in three months.

Major Altcoins including (ETH) saw even bigger losses. The total market capitalization of the cryptocurrency market has decreased by almost 7.5% in the last 24 hours and stands at $1.66 trillion at the time of writing.

Bitcoin has had a positive correlation with major stock indices since 2020, the start of the global pandemic. This means that the benchmark crypto generally moves in the same direction as the equity market, rather than acting as a less risky safe-haven asset like gold.

Bitcoin’s current level of correlation with the S&P500 index is one of the highest in history, according to Arcane research data.

The recent stock market sell-off, which triggered the cryptocurrency price drop, surprised financial professionals. “The 100% reversal in half a day is truly extraordinary,” one told CNBC.

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