Bitcoin Finished Up a Bit, Stocks Finished Down a Lot
Monday, Bitcoin prices rallied above $7,000 Monday after falling 25% last week, as major US stock markets fell.
The world’s largest digital currency gained more than $500 from Easter Sunday, according to data from CoinDesk.
Bitcoin hit a high of $7,108.20 Monday, and later dropped to $6,919. It is down more than 50% YTD.
Currently, Bitcoin is trading at: 7,027.9951,+128.01, or +1.86%, as of 2:54a BST, the market is open.
US stocks meanwhile dropped on the 1st trading day of Q-2 as Amazon dive put pressure on the broader tech sector.
Cryptocurrency prices have been hammered too in Y 2018 after news of regulatory crackdowns, major hacks, tech companies banning advertising and investor uncertainty around the upcoming tax season.
The digital currency dropped 12% in late January after Facebook (NASDAQ:FB), the world’s 2nd-largest online ad provider, said it would ban all advertisements that promote cryptocurrencies to prevent the spread of what it called “financial products and services frequently associated with misleading or deceptive promotional practices.”
Google (NASDAQ:GOOG) announced a similar ban in in March, and Twitter followed suit last week.
Bitcoin’s 1-Day performance
Among the headwinds for Bitcoin, is regulation.
SKorean, Japanese and US regulators announced increased scrutiny of cryptocurrency trading in the last few months.
Tax season may also be dampening prices, and some analysts have highlighted the potential for 1st-time investors to sell as they wake up to the fact that they owe capital gains on Y 2017’s cryptocurrency trading profits.
The total market capitalization of all cryptocurrencies tracked by CoinMarketCap has dropped by more than 58% YTD, and Bitcoin’s market cap meanwhile is down by 49%, according to the data.
The cryptocurrency hit a high of near $20,000 in December, after starting the year below $1,000.
Bitcoin’s YTD performance
Monday, the selloff in technology majors deepened wiping out the tech-heavy NAS index’s gains for the year and pushing the benchmark S&P 500 below a Key technical mark for the 1st time in nearly 2 months.
All the 11 major S&P sectors were lower, with stocks also coming under pressure over renewed fears of a trade war after China imposed additional tariffs on some products.
The technology index ended down 2.7%.
Amazon dropped nearly 5% after President Donald Trump launched his latest attack over the pricing of the retailer’s deliveries through the US postal system and promised unspecified changes.
Facebook was down 2.6%, while the other ‘FANG’ constituents Netflix, Google-parent Alphabet were down between 2.5 and 4.4%.
Tesla shares shed about 7% ahead of the EV maker’s announcement of Quarterly production numbers for its Model 3 sedan.
What we are seeing in the market is a change in leadership, it happened at the end of last month where you had tech starting to do not so well. That happened again Monday as market participants are asking the Big Q: Is this the change in leadership and what should we do about it?
Monday, the major US stock market indexes finished at: DJIA -458.92 at 23644.19, NAS Comp -193.33 at 6870.12, S&P 500 -58.99 at 2581.88