Bitcoin (BTC) Wipes Out Gains, Follows Stock Markets Downturn

[Ozark]

Just as BTC prices seemed to hold on to the $4,200 range, a series of crashes returned the coin to around $3,800.

Bitcoin (BTC) broke its pre-Christmas rally, weighed down by a series of sell-offs over the past day. Within hours, BTC saw several crashes, first toward the $4,000 range, then to lows near $3,810. This time, the price movement of BTC seems to coincide with another slump in the stock markets, where the Dow Jones lost more than 2,000 points in a week, down to 21,792 points on Christmas Day.

BTC traded at $3,817.05 as of 12:00 UTC on Tuesday, on significant selling volumes of $6.5 billion. About 53% of all trades were in Tether (USDT) pairs. This time, the USDT trading has a premium of only about $80.

The new year approaches with warnings that the general tides of investment and trading are shifting, with more exchange indexes tumbling from recent highs, and the S&P 500 down from 2,700 points to current levels around 2,300. In the past quarter, exchange indices wiped out most of the gains made in 2018. Now, both the digital asset market and the stock markets seem to be in bear territory.

In the past weeks, the expected year-end rally failed to materialize for both traditional and crypto markets. A series of factors changed sentiment, including the US government shutdown, and the Fed’s readiness to continue exchange rate hikes. Additionally, US Treasury Secretary Steven Mnuchin worried banks with a recent message initially intended to calm (otherwise unknown) fears of dwindling liquidity.

https://twitter.com/vikramQL/status/1076975186325499905

Some are comparing the behavior of previously hot stocks to the typical volatility of altcoins and tokens:

https://twitter.com/IvanOnTech/status/1077182511359422464

Other major coins that lost their recent gains included Ethereum (ETH), which returned to the $129 range. Bitcoin Cash (BCH) went quickly under the $200 mark, trading around $160.29, while Bitcoin SV (BSV) sank by 14% in the past day to $92.42.

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