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Reflecting the decline in the stock market, the virtual currency market is also depressed. On Wednesday, Bitcoin saw a significant drop of more than 2.5% over the past 24 hours, with the price hovering around $65,000. The decline dashed hopes of breaking the $70,000 threshold that gained momentum just a week ago. This downward trajectory highlights the increasing volatility of the crypto market and highlights the interconnectedness between cryptocurrencies and traditional financial markets.
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Bitcoin’s decline can be attributed to increased pressure on tech stocks, especially Tesla (TSLA -2.01%), which is scheduled to release its latest earnings after the closing bell. Analysts expect Tesla’s earnings per share to be 60 cents, down from 66 cents a year earlier, compared to 52 cents a share in the prior quarter, according to estimates from FactSet (FDS -0.28%). It has improved since then. Revenue is expected to reach $25.4 billion in the third quarter of 2023, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the previous quarter.
Meanwhile, the benchmark 10-year Treasury yield continued to rise, reaching 4.23%, its lowest level since July. Traditionally, rising bond yields put downward pressure on stock valuations. Rising U.S. Treasury yields signal that investors are becoming more concerned about the economic outlook and prefer safer investments such as bonds over stocks.
Other important cryptocurrencies are also facing losses. Ether, the second-largest cryptocurrency by market capitalization, has fallen more than 3% in the past 24 hours and is currently trading at around $2,500. Cardano fell more than 3.5%, Avalanche fell more than 4.5%, and popular meme coin Shiba Inu fell about 3%.
Overall, global crypto market capitalization has shrunk by 2% and now stands at $2.2 trillion, according to data from CoinMarketCap.
