{"id":6401,"date":"2021-02-26T23:02:39","date_gmt":"2021-02-26T23:02:39","guid":{"rendered":"https:\/\/cointelegraph.com\/news\/increasing-stock-market-volatility-drags-bitcoin-and-altcoin-prices-lower"},"modified":"2021-02-26T23:02:39","modified_gmt":"2021-02-26T23:02:39","slug":"increasing-stock-market-volatility-drags-bitcoin-and-altcoin-prices-lower","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/increasing-stock-market-volatility-drags-bitcoin-and-altcoin-prices-lower\/","title":{"rendered":"Increasing stock market volatility drags Bitcoin and altcoin prices lower"},"content":{"rendered":"

The cryptocurrency market faced another day of downward pressure as the unease in the traditional markets continues to spread following the recent interest rate spike on the 10-year U.S. Treasury bond<\/a>. <\/p>\n

Data from Cointelegraph Markets<\/a> and TradingView<\/a> shows that the price of Bitcoin (BTC<\/a>) fell to a low at $44,710 late on Feb. 25 before buying at the key support returned to help the digital asset recover back above $46,500 but generally, analysts are looking for $50,000 to become an established support before expecting bullish continuation.<\/p>\n

BTC\/USDT 4-hour chart. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

Despite major BTC purchases by MicroStrategy, Tesla and MassMutual, a majority of institutional investors still have security and tax treatment concerns<\/a> that prevent them from investing in Bitcoin, according to Galaxy Digital co-president Damien Vanderwilt. <\/p>\n

Institutional investment has been a significant source of optimism in the cryptocurrency sector in 2021, but its influence in helping BTC reach a market cap of $1 trillion may be overstated as recent analysis shows that stablecoin whales and retail traders<\/a> still hold the most buying power. <\/p>\n

Interest rate increase puts pressure on GBTC<\/h2>\n

On Feb. 25, the interest rate for the 10-year U.S. Treasury spiked to 1.52%, its highest level in over a year. <\/p>\n

According to Chad Steinglass, Head of Trading at CrossTower, the move led to market-wide pressure that pushed the \u201cGBTC premium down as low as negative 6% and it closed around negative 2% today.\u201d The analyst sees interest rate volatility as a major source of market volatility, as the long end of the curve steepens while the U.S. dollar is pushed lower. <\/p>\n

Daily cryptocurrency market performance. Source: <\/em>Coin360<\/em><\/a><\/figcaption><\/figure>\n

Cryptocurrencies fell under increased pressures as equity markets deteriorated throughout the day, possibly due to a \u201cscramble for liquidity\u201d resulting from traders \u201cpushing up against margin calls and needing to free up cash.\u201d<\/p>\n

Steinglass said: <\/p>\n

\u201cI interpret the GBTC premium collapse as a sign that either retail is dumping to free liquidity, or large fund holders like ARKW are seeing outflows, which causes them to sell GBTC along with everything else.\u201d<\/p><\/blockquote>\n

Traditional markets are still choppy<\/h2>\n

The 10-year Treasury yield pulled back .0582 basis points to 1.46 on Feb. 26, marking a 3.82% decrease from its high on the previous day. This leadi to a choppy day in the markets which saw the major indices close mixed. <\/p>\n

The NASDAQ finished the day up 0.56%, recovering some of its losses from the 3.5% drop on Feb. 25. Meanwhile, the S&P 500 and DOW finished the day in the red, down 0.48% and 1.51% respectively. <\/p>\n

A majority of the top cryptocurrencies also took on sharp losses on Friday, with the exception of Cardano (ADA<\/a>), which became the third-ranked cryptocurrency by market cap<\/a> after its price broke out to a new all-time high at $1.29. The current excitement for the altcoin appears to be connected to the upcoming ‘Mary’ mainnet launch scheduled for March 1. <\/p>\n

ADA\/USDT 4-hour chart. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

Basic Attention Token (BAT) has also battled back against the market sell-off to post a 6.43% gain following the Feb. 23 announcement<\/a> of the upcoming Brave Decentralized Exchange (DEX). <\/p>\n

Ether (ETH<\/a>) price is down 7.19%  and trading below $1,500, while Binance Coin (BNB<\/a>) has dropped 8.36% to $224.14<\/p>\n

The overall cryptocurrency market cap now stands at $1.533 trillion and Bitcoin\u2019s dominance rate is 61.3%.<\/p>\n

Source: COINTELEGRAPH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The cryptocurrency market faced another day of downward pressure as the unease in the traditional markets continues to spread following the recent interest rate spike on the 10-year U.S. Treasury bond.  Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin (BTC) fell to a low at $44,710 late on Feb. 25 before…<\/p>\n","protected":false},"author":1,"featured_media":6402,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[583,131,149,441,521,584,442,443,585],"class_list":["post-6401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-basic-attention-token","tag-bitcoin-price","tag-cardano","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-gbtc","tag-market-update","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6401"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=6401"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/6402"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=6401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=6401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=6401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}