Bitcoin (BTC-USD) broke below $100K on Thursday afternoon as investors pulled back from risk, pulling down crypto-related stocks. Equity markets also retreated as the process of restarting the U.S. government may be a bumpy one. Economists fear that some of the economic data usually produced by the federal government may never be recovered, as data collection halted during the 43-day shutdown.
Bitcoin (BTC-USD) fell 3.1% to ~$98.4K at about 1:44 PM ET. Other cryptocurrencies followed suit.
"We would not be surprised to see some market chop over the coming weeks as the government gears and economic data presses get turning again," said Carol Schleif, chief market strategist at BMO Private Wealth.
In addition, the odds of the Federal Reserve cutting rates further have declined. Lower interest rates encourage spending and economic growth. Cleveland Fed President Beth Hammack said the Fed's policy should remain "somewhat restrictive," but right now she considers it to be "barely restrictive."
Among other cryptocurrencies, ethereum (ETH-USD) slid 6.7% to ~$3.21K, solana (SOL-USD) fell 5.0%, cardano (ADA-USD) decreased 5.0%, and Doge coin (DOGE-USD) dropped 3.6%.
The crypto downdraft dragged miners and other crypto-related stocks with it. MARA Holdings (MARA) tumbled 10%, Riot Platforms (RIOT) slid 11%, Hut 8 (HUT) lost 13%, and Hive Digital (HIVE) fell 10%.
Coinbase Global (COIN), the crypto exchange, retreated 6.6%, Bullish (BLSH) declined 8.7%, Robinhood Markets (HOOD) fell 10%, and Strategy (MSTR) slid 6.2%.
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