Despite Relief on Wall Street, Crypto-Verse is Still in Reds
In the past 8 weeks, the entire stock market continued having a bumpy ride. It was mainly due to the interference of the US Federal Reserve, which resorted to increasing the interest/inflation rates.
Performance of Tech Stocks
By the year 2021, the tech stocks had recorded a huge following. The tech sector thrived throughout the pandemic and the stock prices for each tech company experienced substantial gains.
However, the pandemic has also impacted the global economy on a much higher scale. The shockwaves of the pandemic are growing fiercer with every passing day and the inflation rates are constantly rising.
Due to the tech stock market dip, the cryptocurrency sector also ended up taking a huge negative hit. The global economic pressure and the surge in interest rates ended up adding to the negative factors the tech sector was already facing.
As the US Government announced a solution for the growing interest and inflation rates, the tech stock markets have started coming back to normal.
The Cryptocurrency Markets are Not Recovering
At the beginning of the past week, the stock prices for the majority of the tech stock companies started recovering. Even to this moment, the stock prices of these companies are improving with every passing day.
Unfortunately, the same situation is not with the cryptocurrency sector. The cryptocurrency sector has been hovering within the negative zone mainly experiencing the reds. As a result, the cryptocurrency investors don’t seem to be getting any relief.
Bitcoin is Still Stuck at $29,000
For the record, the current trading price of Bitcoin is around $29,000. It has experienced a 1% dip in its price in a 24-hour window. Bitcoin continues experiencing a downtrend despite the uplifting performance of the global stock markets. Whether it is the stocks or the indices, the results from each stock exchange market are in greens.
Although Bitcoin is somewhat connected with the global stock markets, still, the current situation of Bitcoin is completely different from the stock markets. The major tech exchanges that include Dow Jones, NASDAQ, and S&P 500, are all demonstrating significant gains.
On the other hand, Bitcoin is recording no improvement in its trading price or valuation whatsoever.
Altcoins’ Performance is Even Worse
Then come the altcoins that are also experiencing huge dips and are in deeper reds than Bitcoin. At the moment, the most critical and major altcoins include ETH, ADA, SOL, XRP, and many more.
The price plunges that these (mentioned) cryptocurrencies have witnessed are 10%, 11%, 16%, 6%, and so forth.
In the light of the above and no important (positive) updates supporting these cryptocurrencies in a positive manner, the overall trend for the crypto-verse may remain bearish.
