As Chinese technology stocks fell amid earnings worries a day after the Federal Reserve’s hawkish comments, bitcoin lost support at $30,000.
On Thursday morning, larger market sell-offs were triggered by waning enthusiasm surrounding solid economic growth. Following a day of losses in US stocks, Asian markets fell, causing sell-offs in bitcoin (BTC) and other major cryptocurrencies.
After plunging below $30,000 on Wednesday, Bitcoin struggled to recoup support. The asset is trading over $29,000, with support at $27,000 if it falls below present levels.
Bitcoin’s weakness spread to crypto heavyweights, with Solana’s SOL and Cardano’s ADA dropping up to 9% in the last 24 hours to lead to losses. Traders are believed to have sold key cryptocurrencies in anticipation of a further slump in global markets.
Cryptocurrency price swings have recently paralleled those in the United States, with bitcoin trading similarly to a volatile technology stock.
Ether (ETH) plummeted 4 percent, Polkadot’s DOT lost 7 percent, and Dogecoin (DOGE) fell 5 percent. Tron (TRX) rose a paltry 0.2 percent, while Polygon (MATIC) lost 9 percent, wiping out Wednesday’s gains.
The cryptocurrency market capitalization fell by 3% to less than $1.3 billion. The drop followed a plunge in US markets on Wednesday, when earnings results from consumer sectors Target (TGT) fell short of expectations, sending the mega retailer’s shares down more than 22% in the US session.
According to reports, inflation is causing customers to spend more on food and less on discretionary products, with Walmart (WMT) reducing profit expectations on Wednesday due to increasing fuel and labor expenses.
Earnings disappointment in the United States extended over to the Asian session, led by a decline in Chinese technology companies. The Sensex and the Asia Dow fell more than 2.2 percent, while European markets began almost 0.1 percent down.
Tencent, the Chinese internet behemoth, reported its lowest revenue increase since 2014, falling 8% in Thursday’s session. The Hang Seng Tech Index in Hong Kong fell 5.1 percent as experts worried that the negative consequences of lockdowns and curtailed expenditure will eventually show up in Asian earnings reports.
Global market weakness increased on concerns about weaker spending in the future years as the West raises interest rates and tightens monetary policy.
US Federal Reserve Chair Jerome Powell has committed to continue tightening monetary conditions until inflation falls, with some cryptocurrency experts forecasting a further slump in cryptocurrencies if present market circumstances persist.