Crypto market contraction as US stocks slide

THERE'S been a lot of churn in crypto markets over the past few weeks due to various intra-market and global events. This morning, Bitcoin's price is down again, trading around $64,800 after hitting a high of $66,000 yesterday.

Ethereum is also following this trend, with the original smart contracts crypto priced at about $3,400.

Most of the market is retracing into the red after the recent rally, but still holding onto healthy gains recorded over the past seven days. Some digital assets have seen significant gains during this period, with XRP up 29% and Near rising by 30%.

Analysts suggest that a drawdown in the US stock market is contributing to the dip in crypto markets. The S&P 500 is down roughly 1.5% overnight, driven primarily by a sell-off in tech stocks amid concerns over escalating trade tensions between the US and China.

‍

In the Markets

‍

Total crypto market cap

$2.37 trillion (-1.23%)

‍

What Bitcoin did yesterday

Daily high $66,051 |  Daily low $63,897

‍

Bitcoin market capitalisation

$1.28 trillion (-1.23%)

‍

Bitcoin volume

$30.32 billion (-22.59%)

‍

CoinDesk Large Cap Select Index 

-1.12%

The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market. 

‍

SP500

-1.39%

‍

Fear and Greed Index

57 (Neutral) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

‍

Bitcoin’s market dominance

55.14

The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.

‍

Bitcoin Relative Strength Index (RSI)

54.90

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

‍‍

Post Script…

‍

Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

‍