Cryptocurrency coins. Credit: Iaroslav Danylchenko phoographer/Adobe Stock Cryptocurrency Losses Deepen With Bitcoin Tumbling Below $34,000
Cryptocurrency has come under widespread selling pressure in recent days, with traders pointing to hawkish signals from the Federal Reserve and a sell-off in technology shares as reasons for traders to withdraw from risky assets.
January 24, 2022 at 01:48 PM
2 minute read
The sell-off in cryptocurrencies gained momentum, with Bitcoin tumbling to a six-month low and other digital tokens seeing even bigger losses.
Bitcoin sank as much as 6.6% and fell below the $34,000 mark, continuing a six-day downturn. Ether retreated 7.6% and touched $2,201, also the lowest since July.
Across the crypto spectrum, markets were in a sea of red with Solana's SOL and Cardano's ADA plummeting 19% and 13%, respectively, according to data compiled by CoinGecko.
Crypto has come under widespread selling pressure in recent days, with traders pointing to hawkish signals from the Federal Reserve and a sell-off in technology shares as reasons for traders to withdraw from risky assets. Since its all-time high in November, Bitcoin has tumbled more than 50%.
"We don't think it is a bad thing if market volatility takes some of the air out of the more speculative corners of the market," said strategists led by Mark Haefele, chief investment officer at UBS Global Wealth Management.
The 40-day correlation coefficient for the digital token and the tech-heavy Nasdaq 100 has reached almost 0.66, the most in data compiled by Bloomberg since 2010. A similar correlation with the S&P 500 is at a record too.
Cryptocurrency-exposed stocks tumbled in premarket trading. MicroStrategy Inc. slumped about 12%, while Bitcoin miners Marathon Digital Holdings Inc. and Riot Blockchain Inc. dropped similar amounts.
Chris Weston, head of research with Pepperstone Financial Pty Ltd., said the sector is "grossly oversold but momentum is to the downside and rallies are likely to be sold."
Peter Berezin, chief global strategist at BCA Research Inc., is skeptical about Bitcoin overall even as he sees the possibility of a short-term boost should stocks recover. His long-term target for it is just $5,000. Investors seeking to hedge risk should consider going long on Cardano, Solana and Polkadot versus Bitcoin, Litecoin, and Dogecoin, he said.
Emily Nicolle reports for Bloomberg News.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Trump Mulls Big Changes to Banking Regulation, Unsettling the Industry
CFPB Orders Big Banks to Limit Overdraft Fees to $5. But Will Its Edict Stick?
3 minute read
US Judge Throws Out Sale of Infowars to The Onion. But That's Not the End of the Road for Sandy Hook Families
4 minute read
Greenberg Traurig Initiates String of Suits Following JPMorgan Chase's 'Infinite Money Glitch'
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
