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The strong sell-off in the global equity market has spilled over to the crypto market with Bitcoin, ethereum, and other altcoins coming under strong selling pressure. On Wednesday, July 24, Wall Street registered its worst trading day since 2022 as the technology stocks were under pressure and the AI boom seemed to be losing steam.
<h2 id="global-equity-sell-off-put-pressure-on-bitcoin">Global Equity Sell-off Put Pressure on Bitcoin</h2>
In the Asian trading hours on Tuesday, Bitcoin faces some selling pressure with its price dipping 2.5% to $64,252 with a market cap of $1.266 trillion. <a href="https://coingape.com/ethereum-price-falling-today/" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a> faced even major blow crashing by 85 earlier today, a day after the spot Ethereum ETFs went live for trading in the market.
While <a href="https://coingape.com/blackrock-ethereum-etf-wallet-receives-76669-eth-from-coinbase/" target="_blank" rel="noopener noreferrer nofollow">BlackRock Ether ETF</a> sees inflows for two consecutive days, more than $811 million have flown out of the Graysclae Ethereum ETF (ETHE) taking its AUM to under $8 billion. Benjamin Celermajer, co-chief investment officer at Magnet Capital told <a rel="noopener noreferrer nofollow" href="https://www.bloomberg.com/news/articles/2024-07-25/bitcoin-btc-ether-eth-slide-as-risk-aversion-spreads-to-crypto-market" target="_blank">Bloomberg</a>:
<blockquote>
 “It mainly seems that after a bad night for equities in the US, crypto like most asset classes is feeling a little bit of a flow-on effect in sentiment”.
</blockquote>
It is clear that Ethereum has been facing sell-the-news pressure after the ETF approval, which could dry out quickly if the market sentiment allows.
On the other hand, Bitcoin has also shown major divergence with global stocks recently. The cryptocurrency has remained more or less resilient amid the uncertain outlook of the company’s earnings.
Also Read: <a href="https://coingape.com/bitcoin-conference-tomorrow-what-to-expect/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Conference Tomorrow: What to Expect</a>
The 30-day correlation coefficient between Bitcoin and the MSCI index of global shares has approached minus 0.20. This is an unusual development as the coefficient has remained largely positive since 2020. A coefficient of 1 indicates that the assets move in sync, while a reading of minus 1 suggests an inverse relationship.
<figure id="attachment_209356" aria-describedby="caption-attachment-209356" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-209356" src="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Global-Equities-1.jpg" alt="" width="1136" height="635" srcset="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Global-Equities-1.jpg 1136w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Global-Equities-1-300x168.jpg 300w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Global-Equities-1-768x429.jpg 768w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Global-Equities-1-150x84.jpg 150w" sizes="(max-width: 1136px) 100vw, 1136px">
 <figcaption id="caption-attachment-209356" class="wp-caption-text">
 Courtesy: Bloomberg
 </figcaption>
</figure>
Amid the strong demand for the US-based exchange-traded-funds (ETFs) for Bitcoin, the asset class has surged 51% since the beginning of the year. On the other hand, the MSCI global stock index has remained largely stable with 12% year-to-date gains. Besides, US lawmaker <a href="https://coingape.com/sen-cynthia-lummis-likely-to-introduce-new-bitcoin-bill-for-us-strategic-reserve/" target="_blank" rel="noopener noreferrer nofollow">Senator Cynthia Lummi</a>s is keen on making BTC a US strategic reserve.
<h2 id="asian-indices-slide">Asian Indices Slide</h2>
Apart from the US market, the Asian indices are also showing weakness amid a strong pullback in the artificial intelligence frenzy. The MSCI Asia Pacific Index dropped by 1.5% as Japan’s Nikkei 225 Stock Average is facing strong technical correction. Homin Lee, senior macro strategist at Lombard Odier Singapore Ltd. said:
<blockquote>
 “There seems to be a broad reassessment on the cost and benefit calculus for the artificial intelligence ecosystem. Anxieties about consumer demand also persist due to hints of softening data in the US. These worries could prove temporary in the end, but a collective reappraisal by investors is natural after such a furious rally.”
</blockquote>
Also Read: <a href="https://coingape.com/peter-brandt-predicts-us-dollar-collapse-backs-bitcoin-as-solution/" target="_blank" rel="noopener noreferrer nofollow">Peter Brandt Predicts US Dollar Collapse, Backs Bitcoin as Solution</a>
The post <a href="https://coingape.com/global-equity-sell-off-puts-strong-selling-pressure-on-bitcoin-ether/" rel="noopener noreferrer nofollow">Global Equity Sell-off Puts Strong Selling Pressure on Bitcoin, Ether</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Global Equity Sell-off Puts Strong Selling Pressure on Bitcoin, Ether

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