Cryptocurrency market has sunk lower, together with U.S. equities, after flood of economic data
The price of Bitcoin (BTC) has dropped below the $20,000 level, currently trading at $19,737 on the Binance exchange.
The top cryptocurrency continues to trade in tandem with the U.S. stock market, with the correlation between crypto and equities remaining extremely high. The tech-heavy Nasdaq Composite has slipped by 1.2%. The S&P 500 is also down by more than 0.8%.
Traders are currently assessing various economic data that may provide clues about the pace of interest rate hikes. While retail sales were hotter than anticipated, they actually underperformed analysts’ predictions if the auto sector is excluded. At the same time, initial jobless claims outperformed expectations.
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As reported by U.Today, Bitcoin saw a double-digit drop on Tuesday due to higher-than-expected inflation data.
The Federal Open Market Committee (FOMC) will convene next week in order to make a decision regarding the size of the next rate hike.
Ethereum is top laggard
The Ethereum (ETH) price has slipped below the $1,500 level on the Binance exchange despite the Merge being a resounding success.
As many expected, the upgrade was priced in by the market, which is why this underperformance should not come as a surprise. Even though Ethereum’s transition to proof-of-stake took place without a hitch, it still ended up being a “sell the news” event.
The ETH token has plunged by more than 5% over the past hour alone, vastly underperforming other major altcoins.
Source: https://u.today/top-reason-why-bitcoin-just-dipped-below-20000