The tech-heavy Nasdaq (COMP.IND) is down a stunning 17.3 percent YTD.
According to Google Trends, retail interest in Bitcoin has been down since mid-2021.
It seems that investors are pricing in an even more aggressive route for the Federal Reserve to raise interest rates, which is hurting the value of many big cryptos. Bitcoin, the world’s most valuable digital currency, has fallen over 6% intraday to $39.7K, wiping out all of this week’s gains.
At $2.96K, Ethereum, the most widely used altcoin in the crypto community, is down 4%. The Dow Jones (DJI) is down 1.3 percent, the S&P 500 (SP500) is down 1.1 percent, and the Nasdaq (COMP.IND) is down 0.7 percent, the three main U.S. stock market indexes.
Selling Pressure Across Sectors
The tech-heavy Nasdaq (COMP.IND) is down a stunning 17.3 percent YTD as investors shift away from growth-risk assets in favor of yield-safe ones like bonds. The Fed’s Jerome Powell has suggested that it is reasonable to remove monetary policy accommodation more quickly, citing a likely 50 basis-point raise at the forthcoming May meeting, which has sparked selling pressure across a wide variety of risk assets.
Popular crypto analyst warns about further decline if Bitcoin prices are not able to hold the critical support level but is optimistic that the prices will rebound in a detailed video shared over his Twitter handle.
According to Google Trends, retail interest in Bitcoin has been down since mid-2021. According to Tastyworks chief market analyst JJ Kinahan, Bitcoin might be a decent barometer of consumer mood, but it’s not the greatest. Recent declines in retail mood may have caused several popular meme stocks to fall behind Bitcoin, according to Kinahan. While the Federal Reserve’s response to growing inflation and market expectations on Bitcoin will be critical to future economic prospects.