The cryptocurrency market was in the red on Friday as Bitcoin dipped below the $42,000 mark. Bitcoin is now hovering around $41,300 and could slip below $40,000 if the downturn continues throughout the weekend. The Bitcoin ETF pushed the cryptocurrency market up for a week and is now heading south in the charts. The BTC ETF news acted as a ‘sell the news’ kind of phenomenon as it’s doing little to push Bitcoin’s price up anymore. The cryptocurrency market downturn is also affecting other leading coins like Ethereum, and Shiba Inu among others.
Cryptocurrency Market: Will Bitcoin (BTC), Ethereum (ETH), and Shiba Inu (SHIB) Rise Again?
Bitcoin is dipping in the charts as the US stock market traded in the red this whole week. The strengthening of the US dollar made the stock market dip leading to top companies printing losses in the charts. The effect also hit the commodity markets as gold and oil prices dipped more than 2%. The Red Sea trade disruption also added to the woes and the cocktail was a recipe for disaster for the broader market, including cryptocurrencies.
BTC trades in tandem with the US stock market, and ETH, and SHIB move according to Bitcoin’s price. The trio are mostly interlinked and cannot rally without the support of each other. The development puts BTC, ETH, and SHIB in a spot where climbing up in the indices becomes a challenge.
Investors are advised to remain cautious as the US stock market might be headed for a downturn this year in 2024. Even JP Morgan CEO Jamie Dimon warned that the US markets could crash and lead to a recession.
The move will affect the cryptocurrency market and Bitcoin, Ethereum, and Shiba Inu could begin to bleed in the charts. In conclusion, the cryptocurrency market could turn red if the worst-case scenario plays out making BTC, ETH, and SHIB dip.