CryptocurrencyNews

Reasons behind the Negative Trend in Cryptocurrency and Equity Markets

Bitcoin has dropped by over 4% in the past 24-hours. The downtrend in the cryptocurrency markets is tied to the negative trend in traditional markets.

In just 24-hours, the market cap of crypto markets has lost more than $7 billion, which is not healthy for Bitcoin as well as other altcoins.

The data shows that exchange deposits by whales are increasing in their numbers since September 17, claims CryptoQuant CEO Ki Young Ju. The capital inflow towards cryptocurrency exchanges is putting a lot of selling pressure on Bitcoin and other major coins. A metric is introduced by CryptoQuant which determines the ratio between Whales deposits on exchanges and the rest of the coming transactions on the platforms. CryptoQuant CEO said:

“Exchange Whale Ratio is the relative size of the top 10 inflows to total inflows by day of each exchange. I used the weighted average for all exchanges.”

The equity markets of the US also behave in a downward direction as Dow is down by more than 600%. Bank stocks also suffered a lot because leaked FinCEN documents unveiled the involvement of major banks in illicit activities such as money laundering.  Similarly, gold following other assets also plunged by 2%.

📰 Also read:  NFT Sales Increase by 18% as Trading Volume on Solana Peaks at $5.93 Billion

Not only Bitcoin suffer a lot in the daily run but the majority of the altcoins are also suffering greater losses. Ethereum has decreased by almost 9%. In the top 20 coins, Polkadot, Binance Coin, Chainlink, and Cardano have plunged by more than 10%.

The DeFi coins are also showing a clear negative trend as yearn.finance has decreased by nearly 25% in the 24-hours.

Coronavirus Cases are Surging

According to many analysts, Coronavirus is the major reason behind the dumping of stocks and digital assets. Edward Maya of OANDA said:

“Global stock markets are tumbling as coronavirus cases surge in Europe, political tensions in the US will likely derail any further fiscal support efforts.”

“Surging coronavirus cases and doubts over the next over the next round of fiscal support is triggering a wide range risk averse tone that is sending the dollar higher and sinking gold,” Maya added.

📰 Also read:  Avalanche Foundation Agrees to Buy Back 1.97M AVAX Tokens Sold to Terraform Labs in 2022

Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  NFT Sales Increase by 18% as Trading Volume on Solana Peaks at $5.93 Billion

Hassan Mehmood (Saudi Arabia)

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content