On Monday morning, the price of bitcoin temporarily fell below $42,000, losing more than 3.5% from its peak on Sunday. This is clear evidence of a tug-of-war between bullish retail traders and professional bidders who sold risky assets in response to pressure on stock prices.
In total, over the past 24 hours, Bitcoin has lost about 1% and 8.9% for the week. Ethereum has fallen by 9.6% over the past 7 days, other major altcoins have fallen in price by 19.2% (Solana) and up to 18.2% (Avalanche).
According to CoinGecko, over the past day, the total capitalization of the crypto market has decreased by 1.7% to $ 2 trillion, while the dominance of bitcoin is 39.3%.
By the beginning of the day on Monday, the cryptocurrency fear and greed index lost 2 points and dropped to 32, settling in fear territory.
The crypto market again increases its correlation with the dynamics of stocks, or rather, it focuses on the high-tech Nasdaq index. This connection is explained by the fact that in both cases, investors are betting on a progressive idea, and not on a stable income.
Thus, the cryptocurrency market is increasingly becoming a platform for the assets of smaller projects in the technology field. There is nothing wrong with this in the long run, but right now this direct correlation with stocks could be doing a disservice. Amid tighter monetary policy, stocks are under increased pressure.
Amid deteriorating sentiment, Bitcoin fell to a 50-day moving average of around $42,000. Fixing below this level could open a direct route to the March lows around $38,000.
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