Bitcoin & Ethereum Continue Losses To September Lows - Miner Stocks Fall Too.

Bitcoin & Ethereum Continue Losses To September Lows - Miner Stocks Fall Too.

2022-01-07 | Daniel Smith

Bitcoin & Ethereum Continue Losses To September Lows - Miner Stocks Fall Too.

• Bitcoin (BTC-USD) as well as ethereum (ETH-USD), the two biggest cryptocurrencies by market cap, keep falling as investors price in a possibly rising interest rate scenario in the aftermath of the Fed minutes released on Wednesday.

• The worldwide crypto market cap has dropped over 9% to 2.03T in the last 24 hours, including ethereum (ETH-USD -11.5%), Solana (SOL-USD -11.5%), terra (LUNA-USD -11.7%), avalanche (AVAX-USD -10.9%), polygon (MATIC-USD -10.7%), and crypto.com coin (CRO-USD -10.6%) all down at minimum 10%.

• Not alike BTC, ether (ETH-USD) is still trading beyond its 200-day simple moving average (on a 52-week time period) at $3.2K per token. Bitcoin (BTC-USD) is currently trading around $43K, over 7% under its 200-day SMA. It is worth noting that both BTC and ETH fell as low as September 30.

• Not unexpectedly, crypto-miner companies such as Marathon Digital (NASDAQ:MARA), Riot Blockchain (NASDAQ:RIOT), Hut 8 Mining (NASDAQ:HUT), Argo Blockchain (NASDAQ:ARBK), as well as HIVE Blockchain (NASDAQ:HIVE) are dropping in pre-market trade as digital currency plummet.

• On a month-to-month basis, the majority of the firm's personal returns lag bitcoin (BTC-USD) for at minimum ten percentage points. Nonetheless, with BTC up roughly 17 percent year on year, other crypto miners such as MARA and HUT produce triple-digit profits over a similar time frame.

• When contrasted to the S&P 500 index (SP500), the rolling 120-day correlation with bitcoin (BTC-USD) is at its greatest level since November 2020, according to Charles Schwab Chief Investment Adviser Liz Ann Sonders in a Twitter update. Remember that, similar to cryptocurrencies, stocks were hammered following the Fed minutes, which came a day following the S&P hit a fresh all-time high.

• Maybe the riots in Kazakhstan, which are forcing hash rates to fall, are influencing part of the price movement in bitcoin.

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