Amidst a decline in stocks and cryptocurrency, Bitcoin dominance, or the ratio of its market capitalization to the total amount of cryptocurrency, reached a new yearly high of 58%.
The pullback serves as a reminder that Bitcoin and cryptocurrency assets in general are very much at the “pointy end” of the risk asset continuum, according to IG Markets analyst Tony Sycamore, who spoke with Cointelegraph.
“Given that Israel and Hezbollah have been exchanging rockets over the weekend and the US is increasing that military presence in the area, it’s a position wash with some recession and hard-landing fears driving it as well as some war fears,” Sycamore added.
According to Sycamore, the larger carnage taking place in Asian markets, which included a staggering 8% daily decline in Japan’s Nikkei 225 and trade halts in South Korea, was a result of a broader sell-off in the global market.
Therefore, he continued, “I don’t think it’s surprising that those three trades are the ones that have dropped the most.”
Furthermore, Sycamore clarified that the numerous different currencies and ecosystems constructed on top of the network were the reason Ether’s price movement had been “copping it.”
According to Sycamore, “when altcoins get poleaxed, it blows through into [Ether’s] price action as well,” pointing out notable unwinding and sell pressure from cryptocurrency trading company Jump Crypto.
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