empty
31.08.2023 01:45 PM
BTC drops after posting gains on Wednesday

On Thursday, Bitcoin started the trading session with a decline. At the time of writing the article, the BTC price hovers near $27,276.

This image is no longer relevant

According to the CoinMarketCap website, which tracks virtual asset quotes, Bitcoin reached a high of $27,553 and a low of $27,069 yesterday.

Yesterday, BTC's price jumped above $27,434. The cryptocurrency saw a weekly growth of over 3.00%. Notably, since August 18, Bitcoin has been trading below $27,000.

The crucial support factor for the digital currency market was the positive trends in the US stock markets. Following Wednesday's session, the Dow Jones Industrial Average increased by 0.11%, the S&P 500 rose by 0.38%, and the Nasdaq Composite gained 0.54%.

Interestingly, experts note an increased correlation between the cryptocurrency and stock markets in recent months.

Back in late February, analysts from the American investment company Bernstein highlighted that the correlation between digital gold and the NASDAQ Composite index dropped from 0.94 to 0.58 in January.

According to Bernstein, the cryptocurrency market has been balancing between bullish and bearish trends, awaiting further catalysts. However, its sensitivity to significant news and events in the financial world has significantly diminished.

In early 2022, analysts frequently emphasized the high correlation between the American stock market and the virtual asset market. This was amidst tense expectations regarding the geopolitical conflict in Eastern Europe and further actions by the US Federal Reserve. In mid-2022, experts from the investment company Arcane Research stated that the correlation between BTC and tech securities reached its peak since July 2020.

Meanwhile, economists from the analytical platform TradingView indicated that the correlation between the cryptocurrency market and the US stock market stood at 70% in Q4 2022.

Altcoin Market

Ethereum, Bitcoin's main competitor, also began Thursday with a drop. At the time of writing the article, the coin is trading at $1,703.

As for analysts' forecasts regarding the near-term price of ETH, they suggest that the future trend of the altcoin will depend on whether the coin falls below $1,600 or rises above $1,950.

Speaking of the top 10 cryptocurrencies by market capitalization, all coins here reported declines over the past day. Among them, Solana showed the worst results (-4.44%).

In the past week, among the top 10 strongest cryptocurrencies, Bitcoin led in terms of growth (+3.06%), while Solana led in terms of decline (-4.70%).

According to CoinGecko, the world's largest aggregator of virtual asset data, the past 24 hours saw MX TOKEN (+1.94%) top the list of gains among the top 100 most capitalized digital assets, while Astar (-5.87%) led the list of declines.

For the past week, within the top 100 cryptocurrencies, the worst results were demonstrated by the digital asset Pepe (-21.89%), and the best by Toncoin (+19.70%).

According to CoinGecko's data, as of Thursday morning, the total market capitalization of cryptocurrencies was above the crucial key level of $1 trillion, standing at $1.09 trillion. Over the past day, this indicator increased by 4.35%.

Since reaching its peak above $3 trillion in 2021, the cryptocurrency market's capitalization has lost over $2 trillion.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 14

Yesterday, the S&P 500 index hit the target level of 5,516 – the same level as June 20, 2024, which is the 23.6% Fibonacci retracement of the entire rally from

Natalia Andreeva 10:34 2025-03-14 UTC+2

Gold hits record high at nearly $3,000 an ounce. Why are investors dumping stocks en masse?

Wall Street indexes down 1%, S&P 500 confirms correction Trump's tariff changes affect sentiment Gold hits all-time high at $2,993.80 an ounce The US dollar fell against

Thomas Frank 09:40 2025-03-14 UTC+2

Clash of corporate giants: Intel stock soars, PepsiCo loses ground

Intel shares jumped following news that TSMC has extended a joint venture to American chip manufacturers. PepsiCo, on the other hand, fell due to a brokerage downgrade. The latest

10:42 2025-03-13 UTC+2

US Market News Digest for March 13

Intel shares saw an uptick following news of a proposal by TSMC to support US chip manufacturers. This development bolstered investor confidence in the semiconductor sector. Meanwhile, PepsiCo shares came

Ekaterina Kiseleva 10:09 2025-03-13 UTC+2

Intel Stocks Soar, PepsiCo Loses Support: Who Will Win the Race?

Intel Jumps After TSMC Unveils JV with U.S. Chipmakers PepsiCo Slips After Broker Downgrade CPI Shows February Inflation Slowed More Than Expected Indices: Dow Down 0.20%, S&P 500 Up 0.49%

Thomas Frank 05:43 2025-03-13 UTC+2

US Market News Digest for March 12

The S&P 500 is trading lower, but it could reverse upward: oscillators signal a turnaround Trade wars escalate: Trump imposes new tariffs, markets respond with losses. The S&P

Irina Maksimova 10:48 2025-03-12 UTC+2

Business vs. Trump: Companies Lose Billions Due to Tariff Policy

The Number of Vacancies in the US Increased to 7.74 Million in January Kohl's Falls Due to Dismal Annual Sales Forecast Airlines Put Pressure on Dow Transports Trump Maintains Tariff

Thomas Frank 10:42 2025-03-12 UTC+2

US Market News Digest for March 11

After a sharp sell-off on Wall Street that sent the Nasdaq 100 into its deepest plunge since 2022, markets are beginning to recover. Futures on the S&P 500 rose

Natalia Andreeva 11:07 2025-03-11 UTC+2

Tesla Loses $125 Billion, Nasdaq Falls 4% as Economic Uncertainty Rises

Crypto Stocks Fall on Low Bitcoin Prices HSBC Downgrades US Stocks S&P 500 Closes Below 200-Day Moving Average Nasdaq Suffering Biggest One-Day Drop Since September 2022 Delta Air Lines Cuts

Thomas Frank 10:34 2025-03-11 UTC+2

US Market News Digest for March 10

US stock futures fell as investors turned to safe-haven assets amid growing concerns over a slowing US economy and trade risks. The Japanese yen strengthened by 0.6%, reaching 147.245

Irina Maksimova 11:37 2025-03-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.