The Asian stock market is experiencing a significant decline. The stock index in Shanghai and Shenzhen fell by 5%, but cryptocurrency prices are currently little affected by this. Yesterday, the price of BTC fell by just 0.23%, XRP by 2.09%, and ETH by 1.38%.
According to the Chinese financial analytical company Wind Information, the stock index in Shanghai fell so much for the first time since 2016.
Note that during the previous fall of the stock market, the cryptocurrency also dropped significantly in price.
According to CoinMarketCap, two weeks ago, on October 11, during trading in Asia, the price of BTC fell by more than 4%, and XRP and Ethereum fell by 11%. In general, over three days, the cryptocurrency market then lost more than $15 billion.
This was confirmed by the CEO of the cryptocurrency hedge fund BitBull Capital, Joe DiPascal, noting that the excitement in the stock market also affected the digital markets.
“When the capital market falls, this also raises concerns for the digital currency market, given its increased volatility and massive selling.”
The events of October 11 also coincided with the publication of a report by the International Monetary Fund, which stated:
“The continued rapid growth of cryptocurrency assets may create new vulnerabilities in the international financial system.”
Currently, most of the digital market is in the red, the price of Bitcoin has fallen by 0.29% at $6,505, Ethereum price down 0.77% at $202.6, XRP down 1.56% at $0.461. But such a smooth downward movement cannot be compared with the decline demonstrated by the stock market.
According to cryptodaily.co.uk
You May Also Like
Bitcoin: 22% of coins in the hands of speculators
According to Chainalysis's recently updated annual study, "long-term investors sold about $24 billion of Bitcoin to new speculators between December 2017 and April 2018, with half of the sales occurring in the month of December alone. This unprecedented injection of liquidity is responsible for the price decline during that period." Obviously, when holders sell a financial product, its price falls, and it can fall quite significantly.
MicroStrategy kicks off 2022 with Bitcoin purchases
MicroStrategy, which has been accumulating Bitcoin non-stop since 2020, made another large purchase as the asset fell.
