Table of Contents
As the stock market declines, the cryptocurrency market is also going through a downturn. On Wednesday, the price of Bitcoin was approximately $65,000 after a major drop of more than 2.5% over the previous day. This drop has destroyed the expectations to surpass the $70,000 mark, which had become popular only a week before.
The declining trend shows the increasing instability in the cryptocurrency sector and the connection between cryptocurrencies and regular financial markets.
Bitcoin Decline Reason
The reason behind the drop in Bitcoin is the growing stress on technology stocks, especially Tesla (TSLA). Tesla is scheduled to announce its most recent earnings after the closing bell. According to projections from FactSet, analysts expect Tesla to release earnings per share of 60 cents, down from 66 cents a year earlier, but an improvement over 52 cents in the previous period.
Compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the previous quarter, revenue is expected to reach $25.4 billion.
The standard 10-year U.S. Treasury note yield has risen further, hitting 4.23%, the highest level since July. Historically, higher bond rates have caused the value of shares to decline. An increase in Treasury yields indicates that investors are becoming cautious about the state of the economy and are choosing safer investments, such as bonds, over stocks.
Other Crypto Drop
There have also been losses for other notable cryptocurrencies. With a drop of more than 3% in the past day, Ether, the second-largest cryptocurrency, is now trading at about $2,500. Shiba Inu declined by almost 3%, Cardano by over 3.5%, and Avalanche by over 4.5%.
The total value of the world's cryptocurrency market has decreased by 2% to $2.2 trillion.
5 Risks to know before you buy Crypto:
- Technical Issues
- Government Intervention
- Quantum Computing
- Scaling up
- Volatility
Should you Invest in Bitcoin right now?
An expert team recently determined the top ten stocks they think investors should buy right now. Bitcoin was not one of them. In the upcoming years, the ten stocks that were selected could yield enormous gains.
Stock Advisor gives investors a clear road map for success that includes two new stock selections every month, monthly analyst updates, and advice on portfolio construction.
