The American market crisis is causing the collapse of crypto!

The successful launch of Bitcoin ETFs in Hong Kong had offered a glimmer of hope for a crypto market recovery. However, the collapse of the U.S. market quickly smothered this momentum, leading to a wave of massive sell-offs in the crypto market and a dip in demand for Bitcoin ETFs, with holdings plummeting by 50%!

Crypto Market Plunge! The Fault of Americans!

The Dow Jones Industrial Average finished in negative territory for the sixth consecutive session, dropping 250 points to close at 37,735. This slump was triggered by a spike in yields on U.S. Treasury bonds, stoked by a robust consumer spending report. The Nasdaq Composite in particular saw a marked decline of 1.8%, while the S&P 500 fell by 1.2% and the Dow by 0.7%.

This sea of red has had dire consequences on the crypto market. Major assets plummeted, sending Bitcoin below the $62,500 mark. Bitcoin ETFs were not spared either as they too experienced a significant drop.

The Shadow of Halving Looms Over Bitcoin

Beyond the current turmoil, the approaching Bitcoin halving raises new questions. It’s true that some experts anticipate a strengthening of the crypto’s value in the long term. But the period leading up to the event could be characterized by increased volatility. Investors will, therefore, need to navigate carefully through this delicate phase, keeping in mind the challenges and opportunities it represents.

The crypto market suffered a major setback following the collapse of the U.S. market. Bitcoin and altcoins have incurred heavy losses. Even the demand for Bitcoin ETFs also collapsed, with a 50% reduction in the holdings of GBTC. As the approach of the halving raises new concerns, investors will need to exercise caution to navigate through this period.