The recent Crypto market rally has been reversed by a bearish weekend. The Digital Asset market is in the red, and financial experts believe that the plunge is correlated to the stock market dip. The slide started after the closure of the stock markets on the lower side on Friday night, and it is still prevailing.
A Few Altcoins are Bullish
Only a few exceptions, such as Monero, ALGO, DAI, TRX, and Binance USD, are in the green. Most of these resilient Cryptos have smaller market dominance, and there are downward pressures on their values.
BUSD is bullish because of the strategic Binance effort in expanding its market into new frontiers, such as the Middle East. Additionally, the digital asset is a Stablecoins that can weather the bearish market to remain in the green. The Crypto Exchange is also investing in the Elon Musk Twitter investment, a factor that gives investors a positive outlook on BUSD.
The Crypto and Stock Market Trends are Correlated
According to Jenna Telesca, a Wall Street Journal financial analyst, institutional investors such as fund managers and hedge funds have heavily invested in the Crypto market. There is a paradigm shift among these investors who treat Cryptos as volatile assets like Tech stocks.
Therefore, when their stock market portfolios are affected by a market cycle such as the prevailing plunge, the Crypto market is also affected as sentiments shift. Some indicators, such as the Fear and Greed Index, portray the market positions that influence investors to decide whether to short-sell or hodl their digital assets. As of May 9, 2022, the Crypto index is at 11, the lowest recorded value since January 8, 2022, when the index was 10.
A Preview of the Crypto Market
In the last 24 hours, BTC has been trading at a low of $33,393.61 and a high of $34,873.63. The current price of $33,678.37 represents a 2.37% plunge that reverses the Friday gains and compounds the 7-day losses to -13.53%. The leading digital asset is trading at its lowest moment since July 20, 2021, at a low of $28,805.37.
ETH on the other hand is trading at $2,463.11. This is the lowest level since January 27, 2022, when the second-largest Crypto by market capitalization traded at $2,423. In the last 24-hour period, ETH has plunged by 3%, and the Friday gains have been aggregated to -13.6%.
USDT, XRP, SOL, BNB, ADA, and LUNA are also bearish alongside other Crypto assets. At the time of writing, the market capitalization is down to $1,547,659,758,716, although the BTC and ETH dominance remains unchanged at 41% and 19%, respectively.