Why Bitcoin (BTC), Etherem (ETH) Are Weaker Today

Bitcoin trading below the $30,000 mark, while Ethereum and dogecoin were also weaker over the last 24 hours at press time on Monday night, as the global cryptocurrency market cap dropped 4.4% to $1.3 trillion.

Price performance of major currencies
Coin 24 hours 7 days Price
Bitcoin BTC/USD -4.1% -0.9% $29,898.70
Ethereum ETH/USD -5.1% -8.7% $ 2,027.14
dogecoin DOGE/USD -4.45% -14.3% $0.09

Top 24-hour earners (data via CoinMarketCap)
cryptocurrency 24-hour change % (+/-) Price
eCash (AIR) +10.3% $0.000047
PAX Gold (PAXG) +0.9% $1,826.98
TrueUSD (TUSD) +0.05% $1

See too: Best USDC interest rates

Why does it matter: Cryptocurrencies continue to mirror equities closely. At press time, the S&P 500 and Nasdaq futures were relatively stable after stocks closed Monday in the red.

The dollar index is down 0.08% to $104.1 at press time. The dollar’s measure of strength against six of its peers fell from the $105 levels it reached on Friday.

On the current state of the dollar index, the cryptocurrency trader Michael van de Poppe said that “the rises were swept away by liquidity”.

The analyst tweeted that if the index lost 103.7 points, more downward pressure could be seen and would lead to a rise in risky assets.

Senior Market Analyst at OANDA Eduardo Moya said that the retail and institutional world “still has huge wounds” from the recent Bitcoin price collapse.

“Confidence is weak in the cryptoverse and until concerns over stablecoins subside, Bitcoin is in the fight for its life,” Moya said in a note, seen by Benzinga.

Earth (LUNA) co-creator Do Kwon on Twitter proposed forking the Terra chain into a new chain without algorithmic stablecoins called Terra, with the LUNA ticker, and Terra Classic with the LUNC ticker.

If Kwon’s proposal is approved, the fork will be coordinated with validators on May 27.

USD land (UST), an algorithmic stablecoin backed by LUNA, lost its peg to the dollar last week, precipitating the cryptocurrency crash. Since then, the value of LUNA has completely plummeted after witnessing massive hyperinflation.

Delphi Digital said Bitcoin’s latest move below the $30,000 mark puts its price nearly 60% below its all-time high. However, a major drawdown does not mean that an “immediate reversal” is imminent.

BTC-USD returns after previous > 55% withdrawals from ATHs — Courtesy Delphi Digital

“Looking at historical cases where the price of BTC dropped by more than 55% following the introduction of a new ATH, its average price performance over the next six months was relatively low,” the independent research firm said in a note.

Read below: Vitalik Buterin Calls for Bank Deposit Insurance-like Protection for Small Cryptocurrency Investors

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