Major cryptocurrencies including bitcoin are continuing their decline trend with prices dropping to $7,000. This drop according to analysts, is as a result of the drop in the stock market, in addition to the possibility of further regulations from Russia.
Leading cryptocurrencies including Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash all fell by six to seven percent in the past 24 hours. Some of the other less recognized alt-coins like TRON, VeChain, and Binance Coin witnessed double-digit drops in the course of the most recent day.
“I think that there is a big connection in the way that people are managing their portfolios and the cryptocurrencies have been increasingly correlated with the stock markets especially in the last few weeks,” eToro analyst Mati Greenspan told CNBC. “This (comes) as more and more brokers add bitcoin, the liquidity bridges are being built.”
The connection between Bitcoin and the stock market is one that’s being increasingly recommended. Yesterday, Wall Street “Bond King,” Jeffrey Gundlach told Reuters that “Bitcoin keeps leading,” and its use as an indicator for markets is more than just a “gut feeling” now. “Bitcoin closed at the low of the year last week, SPX (Standard & Poor’s 500 Index) is now at the low of the year this week,” he said.
A connection amongst Bitcoin and the conventional stock markets will be a blended pack for digital currencies. A few investors, especially the first crypto evangelists, just enjoyed Bitcoin in any case on account of its decentralized decoupling from the currency and bond markets and will see any connection between the two as a harming of the well. For others, connecting the business sectors is the best way to control instability and enable digital currencies to wind up more acknowledged.