Bitcoin (BTC) and Ether (ETH) were little changed in the last 24 hours as traders suspected major cryptos were showing signs of correlation with US stocks.
Bitcoin (BTC) price remained under pressure at $26,200 on Tuesday as the idea of higher interest rates for an extended period reportedly takes hold in financial markets. Traders appear to be pricing in fears of inflation that could impact riskier assets.
“The positive correlation between cryptocurrencies and the stock market is temporarily back on track,” FxPro senior market analyst Alex Kuptsikevich said in a note to CoinDesk. “Despite the stock market storm, the crypto market remains subdued, losing just 0.3% to $1.045 trillion in 24 hours.”
“However, the crypto market fear and greed index is slipping into ‘fear’ territory, meaning the crypto market has not suddenly become a safe haven,” he added. The index assumes that fear drives stock prices down while greed drives stock values up.
Crypto markets fell 0.5%, according to the CoinDesk Markets Index (CMI), a broad tracker of hundreds of tokens. This reflected a decline in US markets on Tuesday, with the S&P500 down 1.5%, the Dow Jones index down 1.1% and the tech-heavy Nasdaq 100 ending the day down 1.4%.
However, Asian markets rose higher on Wednesday, providing relief to crypto bulls as majors erased some of Tuesday’s losses. In the Asian morning hours, BTC was trading at $26,300 and ETH at $1,580.
Elsewhere, alternative tokens have seen tepid growth, with few posting gains. The Maker protocol’s MKR rose 5.5%, while the Shiba Inu ecosystem’s BONE gained 10%, the highest among all actively traded tokens.
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