Cryptocurrencies Bitcoin, Ethereum, XRP, and Dogecoin plummet as technology sector declines; Analyst also notes decrease in Gold prices
Leading cryptocurrencies experienced a significant drop in value as stock markets tumbled due to a technology-driven selloff on Thursday.
During a 24-hour period, notable losses in cryptocurrency prices were recorded, including Bitcoin at -5.68% trading at $83,742.77, Ethereum at -6.37% trading at $2,801.73, XRP at -5.36% trading at $1.79, Solana at -5.90% trading at $117.27, and Dogecoin at -5.89% trading at $0.1167. Bitcoin fell below $84,000, reaching levels last observed in April, with a notable 64% increase in trading volume signaling high sell-off pressure.
The decline extended to Ethereum, which plummeted to $2,751, the lowest since early July, alongside XRP and Dogecoin experiencing sharp declines. Companies associated with the cryptocurrency market, such as Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR), saw their stocks drop by 9.63% and 9.89%, respectively.
The liquidation value from the cryptocurrency market reached about $1.74 billion over the past 24 hours, with $1.64 billion stemming from leveraged long positions alone and Bitcoin’s open interest decreasing by 2.24% to $58.34 billion. This led to a shift in market sentiment from “Fear” to “Extreme Fear” according to the Crypto Fear & Greed Index.
Meanwhile, the global cryptocurrency market capitalization contracted by 4.88% to $2.87 trillion. In terms of top gainers over a 24-hour period, cryptocurrencies with a market capitalization exceeding $100 million included Wrapped Zedxion (WZEDX) with a gain of +180.65%, Sentiment (SENT) with a gain of +67.00%, and ADI (ADI) with a gain of +12.76%.
Stock markets also experienced a downward trend, with major indexes closing negatively. The S&P 500 decreased by 0.13% to 6,969.01, the Nasdaq Composite fell by 0.72% to 23,685.12, although the Dow Jones Industrial Average managed a 0.11% gain to reach 49,071.56. Microsoft Corp. (NASDAQ:MSFT) contributed to the tech sell-off when its stocks plunged by 10%, the largest decline since March 2020, after analysts lowered price targets on CapEx concerns.
Furthermore, during the session, gold’s value retracted by 0.85% to $5,329.63 per ounce from previous highs of $5,590.
For cryptocurrencies like Bitcoin, analysts are watching for key resistance levels and price barriers. Market observers noted Ethereum’s stable price range between $2,600 and $3,400 as a potential area of equilibrium and fair value. Traders and analysts like Ali Martinez highlighted key resistance levels for Bitcoin at $98,643, $121,482, and $144,321 based on Market Value to Realized Value pricing bands’ statistical deviations.
Overall, the market’s fluctuating behavior signals a period of unpredictability for both cryptocurrency and traditional stock markets, with investors closely monitoring key indicators and price movements.
