Cryptocurrencies have continued to lose value due to recent stock market declines. Bitcoin has fallen below $80,000 for the first time since March 11.
Decline in Cryptocurrency Prices
Currently, Bitcoin is trading around $79,000, approaching its previous bottom of just below $78,000. Ethereum and other altcoins are also experiencing significant losses, with Ethereum at around $1,600 – its lowest price since October 2023. Over the past hour, $200 million in crypto positions were liquidated.
Impact of Stock Market on Cryptocurrencies
The stock market, particularly the S&P 500 index, fell 6% today and 10% over two days, a rare occurrence. Analyst Doctor Profit noted that such a decline has only happened four times in stock market history. Losses in the stock market often prompt investors to withdraw funds from riskier assets like cryptocurrencies.
Outlook for Investors
The total crypto market’s RSI (Relative Strength Index) is now at 27. When this number drops below 30, it usually indicates that the market is oversold and may be near a bottom. Currently, Ethereum's transaction fees have fallen to their lowest levels since 2020, indicating extremely low network activity as traders step back from the market. Historically, extreme periods of fear and low activity have often preceded market recoveries, though timing the exact bottom remains nearly impossible.
The cryptocurrency market is facing significant pressure due to stock market declines and position liquidations. Investors should exercise caution and closely monitor market movements.
