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The cryptocurrency market is experiencing a slowdown, closely reflecting the decline in the stock market. On Wednesday, Bitcoin saw a significant decline of over 2.5% in the last 24 hours, with its price hovering around $65,000. This decline has dashed hopes of crossing the $70,000 threshold, which had gained ground just a week before. The downward trajectory highlights the increasing volatility of the crypto market and highlights the interconnection between cryptocurrencies and traditional financial markets.
Bitcoin’s decline can be attributed to increasing pressure on technology stocks, notably Tesla (TSLA-2.01%), which is expected to release its latest results after the closing bell. Analysts expect Tesla to report earnings per share of 60 cents, down from 66 cents a year ago, although that figure marks an improvement from 52 cents in the previous quarter, according to FactSet estimates. (MSDS-0.28%). Revenue is expected to reach $25.4 billion, up from $23.3 billion in the third quarter of 2023 and $25.5 billion in the previous quarter.
Meanwhile, the yield on the 10-year US Treasury note continued to rise, reaching 4.23%, a level not seen since July. Higher bond yields generally create downward pressure on stock valuations. When Treasury yields rise, it suggests that investors are increasingly concerned about the economic outlook, leading them to favor safer investments like bonds over stocks.
Other major cryptocurrencies also suffered losses. Ether, the second largest cryptocurrency by market cap, has seen a decline of over 3% in the past 24 hours, currently trading around $2,500. Cardano fell more than 3.5%, Avalanche more than 4.5%, and the popular memecoin Shiba Inu was down about 3%.
Overall, the global cryptocurrency market capitalization contracted by 2%, now standing at $2.2 trillion. according to data from CoinMarketCap.
