BTC is down 40% from its November peak, compared with a 16% drop in the Nasdaq 100 over the same period.
Continuing its descent on Monday, BTC briefly dipped below $40,000 and tracked losses in global equities.
Amid concerns about inflation and slower economic growth, investors appear to be lowering their exposure to speculative assets, including cryptos and stocks.
Gold, a traditional safe haven, traded higher on Monday, while most altcoins underperformed bitcoin in crypto markets. Ethereum was down 8% over the past 24 hours, compared with a 16% drop in THORChain, and a 6% decline in BTC over the same period.
For now, technical indicators suggest lower support at $37,500 and $40,000 could stabilize BTC's down move. And if the support does its job and provides the market with a bounce up, fundamentally sound tokens will be the quickest to recover. Plastiks, a project that lets companies tokenize their plastic recovery data for monetization and proof of sustainability; Avalanche, a competitor to Ethereum that prioritizes scalability and transaction processing speed; and Terra, a decentralized blockchain payment platform for stablecoins, may witness significant market capitalization growth when the major cryptos bounce back.
However, for now, it appears that investors have tightened their risk budget, which is typical during times of market turbulence. But with the globe realizing the real-world use cases of cryptocurrencies and decentralization, this dip is poised to end soon!
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source https://www.reddit.com/r/btc/comments/u2x3ss/bitcoin_selloff_deepens_as_correlation_with/
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