AAmidst a bloodbath in the market, cryptos have not been spared and Bitcoin has fallen nearly 10% in the past 24 hours as of the morning of May 6, according to CoinMarketCap.
Cash App Borrow: How to Borrow Money on Cash App
Explore: 22 Side Gigs That Can Make You Richer Than A Full-Time Job
After a brief market rally following the Fed’s decision to raise rates by half a point, markets reversed sharply, continuing to slide on May 6.
Brock Pierce, President of the Bitcoin Foundation, told GOBankingRates that the selling off of Bitcoin and other cryptocurrencies has been driven primarily by the technology-driven global market selloff. “There are many positive catalysts for Bitcoin, and with the positive steps recently taken by states and countries to adopt a more cryptocurrency-friendly approach, it is only a matter of time before Bitcoin picks up again. its upward trend,” he added.
On May 5, the Dow Jones Industrial Average posted its worst day since 2020, losing 204 points – or 0.6% – the S&P 500 lost 0.6%, while the Nasdaq Composite lost 0.7%, a reported CNBC.
Bitcoin was hovering around $35,500 on May 6, a steep decline of 9.7% over the past 24 hours, according to data from CoinMarketCap. About $129 billion in value was wiped from the cryptocurrency market in 24 hours, CNBC reported. The asset is also down 48.3% from its all-time high of $69,044, which it reached in November 2021, according to CoinGecko.
Chris Brookins, co-founder and CEO of RociFi, told GOBankingRates that he suspects we are at the start of a deeper sell-off with Bitcoin and the crypto industry in general. “In short, I don’t think we’ve hit rock bottom yet,” he said. “We may be entering a world that crypto has never seen before – a recession. And the associated macro conditions that led to this are just set up for the so-called paperhands to sell their crypto because they have their tech stocks. Bitcoin and Ethereum are in trouble, and of course altcoins will likely struggle even more.
More: 6 alternative investments to consider for diversification in 2022
Brookins added that if you have a long-term investment horizon, now could be a great time to start moving towards strong crypto assets, as Bitcoin nears a year-to-date low, which is unlikely to happen. it breaks again. “So if you’re looking to buy and hold, it’s always good to start scaling carefully when there’s proverbial blood in the streets,” he added, while noting the relative strength of Ethereum in this market – which is down about the same percentage as Bitcoin, but well above its yearly low. This, he said, “shows that Ethereum could gain ground over Bitcoin for overall market dominance. Additionally, other aspects of the crypto market are still active, such as NFTs and various DeFi protocols. .
Ether was down 5.3% in the past 24 hours as of mid-morning May 6, and altcoins were also down significantly, according to CoinMarketCap.
Russell Starr, CEO of DeFi Technologies, told GOBankingRates that with macroeconomic conditions as bad as they have been, it’s impressive that the markets have held on for as long as they have. “It’s hard to predict exactly where such a selloff will end, but it’s not unreasonable to expect Bitcoin to fall to the low of $33,000 it hit in January,” he said. “Between rising interest rates, high inflation and the looming possibility of a recession, the price is largely supported by hope at this point,” he said.
See: What is NEAR Protocol Encryption (NEAR)? Should you buy now?
Crypto Coin vs Token: What’s the Difference?
He qualified his view, however, saying that the crypto ecosystem “is much more than the price of Bitcoin these days.”
“It’s not really time to panic until we start to see the other abandoned systems, such as DeFi protocols and NFT markets. As long as these are still in use, the crypto ecosystem will continue to grow, despite the price going down,” he added. “I’m very confident that Bitcoin and Ethereum prices won’t stay this low forever, but if you want to make a profit on an exponential scale, DeFi , for example, might be a good place to look here.There are a number of protocols that are also seeing prices drop, which means now might be the time to invest.
More from GOBankingRates
This article originally appeared on GOBankingRates.com: How low could Bitcoin drop after stocks drop nearly 10% in one day?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.