The queen of cryptocurrencies continues to decline. Bitcoin was trading at around $62,400 on Monday morning, the lowest since early May.

The cryptocurrency market has experienced a significant correction in recent days. Bitcoin, Ethereum and XRP saw their prices fall by 5% in one week and Solana by more than 14%. Monday June 24 around 10 a.m., bitcoin was trading at 62,438 dollars (approximately 58,300 euros), according to Coinmarketcap.

This general drop in prices, and in particular in bitcoin, is explained by a decrease in interest in the cryptocurrency. In addition to the drop in account openings and the drop in internet searches for bitcoin in recent weeks, bitcoin ETFs have recorded capital outflows reaching more than $900 million over the past week. The second worst week of the year after the last week of April. At the time, bitcoin ETFs had recorded capital outflows of more than $1 billion.

Trendy tech stocks

On top of that, the dollar is at its highest since early May, while the euro is falling to trade at $1.07. This decline is fatal for bitcoin, which is an asset uncorrelated with the dollar. And then the stock markets are doing well and providing significant returns, particularly on the American markets. Capital flows towards US equity markets and particularly technology stocks continue to increase.

While cryptocurrency prices are usually correlated with those of tech, this sector seems to have taken a significant lead compared to the latter. The American giant Nvidiawhich manufactures chips in artificial intelligence, has for example become the first global company on the stock market (before losing this place a few days later) in terms of market capitalization.

Investors therefore prefer stocks that perform with less risk than cryptocurrencies. Bitcoin pays the price. According to analysts, only a return of the price of the cryptocurrency to around $56,000 will perhaps be able to restart bitcoin purchases.

Antoine Larigaudrie, with S├ębastien Bordry


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