TLDR
The
cryptocurrency
market
experienced
significant
turbulence
on
Thursday,
July
25,
2024,
as
prices
of
major
digital
assets
fell
sharply.
This
downturn
came
in
the
wake
of
a
broader
selloff
in
global
equity
markets,
particularly
affecting
US
technology
stocks.
Bitcoin,
the
largest
cryptocurrency
by
market
value,
saw
its
price
drop
from
over
$65,500
to
around
$64,000
within
minutes
during
early
Asian
trading
hours.
Price
on
CoinGecko
This
represents
a
decline
of
about
3%.
The
sudden
price
movement
led
to
the
liquidation
of
over
$250
million
in
bullish
bets,
marking
the
largest
such
event
since
early
July.
Ethereum,
the
second-largest
cryptocurrency,
faced
an
even
steeper
decline.
Its
price
fell
by
approximately
7.5-8.5%,
a
move
that
some
analysts
attribute
to
outflows
from
the
newly
launched
Ethereum
ETF.
The
Grayscale
Ethereum
ETF
(ETHE)
saw
outflows
of
more
than
$811
million,
reducing
its
assets
under
management
to
less
than
$8
billion.
Price
on
CoinGecko
The
cryptocurrency
market’s
downturn
appears
to
be
closely
linked
to
movements
in
the
traditional
financial
markets.
On
Wednesday,
July
24,
Wall
Street
experienced
its
worst
trading
day
since
2022.
The
tech-heavy
Nasdaq
100
index
lost
660
points,
with
major
technology
companies
like
Alphabet
(Google’s
parent
company)
and
Tesla
seeing
significant
drops
in
their
stock
prices.
The
effects
of
this
US
market
decline
spread
to
Asian
markets
early
Thursday.
Japan’s
Nikkei
225
index
slumped
more
than
3%,
while
the
MSCI
Asia
Pacific
Index
dropped
by
1.5%.
Market
analysts
suggest
that
these
movements
reflect
a
broader
reassessment
of
the
artificial
intelligence
sector
and
persistent
worries
about
consumer
demand
in
the
US.
Bitcoin’s
relationship
with
global
stocks
has
shown
an
unusual
pattern
recently.
The
30-day
correlation
coefficient
between
Bitcoin
and
the
MSCI
index
of
global
shares
has
approached
minus
0.20.
This
indicates
that
Bitcoin
and
global
stocks
are
moving
in
opposite
directions,
a
rare
occurrence
since
2020.
Despite
the
recent
drop,
Bitcoin
has
still
performed
well
in
2024,
with
a
year-to-date
gain
of
about
51%.
This
growth
has
been
partly
driven
by
strong
demand
for
US-based
Bitcoin
exchange-traded
funds
(ETFs).
The
crypto
market’s
reaction
to
global
economic
trends
highlights
its
increasing
integration
with
traditional
financial
markets.
As
digital
assets
become
more
mainstream,
they
appear
to
be
more
susceptible
to
the
same
factors
that
influence
stocks
and
other
conventional
investments.
Go to Source
Author: Oliver Dale
