Bitcoin and Ethereum fell again but the market may now be seeing a “brief disconnect” between crypto and the equity markets, according to analysts.
Bitcoin, the largest coin by market cap, slipped 0.73% to US$29,566, while Ethereum dropped 3.22% to US$1,918, with both coins still flirting with their respective support levels of US$30,000 and US$2,000.
Over the last year, crypto markets have mirrored the movements of global equity markets, mainly the Nasdaq in the US and the Hang Seng in Hong Kong, both of which are tech-laden indices.
This was largely due to stock market investors who started to invest their money in crypto during the pandemic.
However, while the Hang Seng is currently down 1% to 19,968 points, the Nasdaq was up yesterday by 1.51% to 11,434 points, moving in the opposite direction of the crypto markets.
Craig Erlam, a senior market analyst at OANDA, believes we a seeing “a bit of a brief disconnect between crypto and the rest of the market”.
“It remains a mild concern that there isn’t much dip-buying appetite even during periods of improved sentiments in the market.
“Nothing much has changed as far as Bitcoin price action is concerned in recent weeks.
“It continues to be choppy around US$30,000 and isn’t really picking up any momentum in either direction," Erlam said.
In some of the altcoins, Solana fell 5.72% to US$46,20, Dogecoin was down 2.92% to US$0.08058 and Cardano declined 3.73% to US$0.4992.