Bitcoin’s price took a hit, dropping below $64,000 as the U.S. stock market experienced a sell-off. The leading cryptocurrency, bitcoin (BTC), saw a 2% decrease within an hour, falling to $63,890 after reaching above $66,000 earlier in the day. As of now, BTC is trading at $64,000, showing a 0.5% decline over the past 24 hours.
Other major cryptocurrencies like solana (SOL), cardano (ADA), and Chainlink’s token (LINK) also experienced a 2%-4% drop within the same time frame. The CoinDesk 20 Index (CD20), which tracks the overall crypto market, was down by 1.2% with most assets in the red.
The crypto market decline coincided with a sell-off in key U.S. stock indexes, with the tech-heavy Nasdaq plummeting by 2.7% and the S&P 500 falling by 1.3%. Tech giants like Nvidia (NVDA) struggled as investors shifted their focus to smaller cap stocks in anticipation of potential interest rate adjustments later in the year. Despite a 6.5% decrease on Wednesday, Nvidia’s stock is still up by 145% year-to-date.
Market strategist Joel Kruger from LMAX Group expressed concerns that if the stock market sell-off deepens, it could impact the crypto rally. However, Kruger also noted that cryptocurrencies like bitcoin could serve as a safe haven for investors seeking refuge from the stock market turbulence.
In a note on Wednesday, Kruger stated, “Even in the case of a major bearish reversal in the equities market, there will still be plenty of reasons to consider investing in bitcoin as a safe asset. Additionally, there will be opportunities to acquire other cryptocurrencies at lower prices, given their potential for significant growth and innovation.”
Overall, the recent fluctuations in both the crypto and stock markets highlight the interconnectedness of these financial sectors. Investors are closely monitoring these developments and considering their investment strategies in light of the evolving market conditions.