The global decline in fortunes of many digital assets last week contributed to an overall decline of the cryptocurrency markets, whose market cap hit a low of $1.3 trillion. However, the recovery of many cryptocurrencies since the beginning of the week now means that the market’s overall fortunes are almost close to a turning point. Cryptocurrencies like Bitcoin and Ethereum occupy a more significant portion of the market. It was no surprise that the slump of both crypto giants last week took a lasting effect on the market’s overall performance. However, as the correction phase looms over these digital assets, the effect changes the fortunes of the overall crypto market.
Wall Street and Crypto Market experience swing in fortune
The fortunes of Wall Street and the Cryptocurrency market, before now, have often seemed to move in the same direction. However, there is a sudden decline in Wall Street’s fortunes, with many stocks down at the moment. The dip in fortunes suffered by the cryptocurrency market last week is starting to become a thing of the past, as many digital assets are beginning to recover. Unfortunately, the same cannot be said of Wall Street assets, as S&P 500, Dow, and the Nasdaq all shut down at the moment.
Many investors have flocked around the shares of the biggest beneficiary of the economic resumption in the country. This situation has now put the status of many shares in jeopardy. On the other hand, the crypto market, currently recovering at its own pace, has witnessed a progressive turnaround in its assets’ fortunes. Bitcoin, currently trading at about $49,876, had witnessed a gain of 12% in the last 24hours and almost close to hitting the $1 trillion market cap again. On the other hand, Ethereum, one of the biggest losers in last week’s overall market downturn, has also started to bounce back. The second most valuable cryptocurrency is currently trading at about $1,609 after a 9% gain in the last 24hours, as it looks to close down on the $1,700 mark again.
No cause for alarm yet
The dip in fortunes of many stocks, especially that of Tech companies like Tesla, means Wall Street might be in for a few dark days. According to reports, many investors are currently chasing after shares from airline companies and other beneficiaries of the economic recovery process. However, the absence of many investors in Wall Street might signify that the crypto market may likely be another destination for these investors, who may be buying at the dip.
However, there is still some positivity amongst many wall street investors who believe that the market will enter into stability soon. The cryptocurrency market is also expected to continue on its recovery part, considering that other digital assets apart from Bitcoin and Ethereum have also gained since the beginning of the week.