Plunging U.S. Stocks Contribute to Crypto Market Decline
Crypto markets reacted positively to the SEC's intent to dismiss a lawsuit against Coinbase, leading to:
- 5% gains for Coinbase (COIN) and Robinhood (HOOD)
- Bitcoin (BTC) nearing $100,000
The situation shifted when Bybit reported a $1.5 billion hack, the largest in crypto history, causing:
- Bitcoin and Ether (ETH) to drop approximately 2%
- Subsequent stabilization and a minor bounce for Bitcoin
However, losses accelerated due to U.S. stock market declines influenced by:
- A drop in the Michigan Consumer Sentiment Index to 64.7, below the expected 67.8
- Increased inflation expectations at 3.5%, above the anticipated 3.3%
- A new coronavirus variant discovered in China
As of Friday's close, key indices showed significant declines:
- Nasdaq down 2.2%
- S&P 500 down 1.7%
In crypto, Bitcoin retraced to $95,000, down nearly 4% over 24 hours, while Ether fell to $2,650, also down about 4%. The CoinDesk 20 Index decreased by 4.4%.