Bitcoin (BTC)’s recent losses have behaved differently than major US stocks this week.
The world’s largest cryptocurrency is down more than 4% over the past seven days at around $29,000. In comparison, the Nasdaq 100, BTC’s nearest stock market counterpart, is expected to gain 2% this week.
With the S&P 500 the gap is quite wide. The benchmark index has gained 3.3 per cent this week.
While markets in the United States have rebounded notably in recent days, bitcoin has rallied away. The token’s Thursday session also reflected this. While Wall Street recovered in the face of disappointing US GDP figures, bitcoin fell below $29,000.
BTC is currently trading at $28,906, which is its last important support level, beyond which it could fall significantly higher. Earlier this month, the coin hit a low of $25,000 for the first time.
Bitcoin, the worst performer against US stocks
The performance gap between BTC and the Nasdaq 100 has widened significantly this year as a result of this week’s losses.
BTC is currently down around 40%, while Nasdaq is down around 25%. Positive corporate profits have aided the Nasdaq, but none for BTC.
The token is currently on its way to its worst weekly run ever, with its ninth consecutive week in the red. On Friday, today, a large number of BTC options will expire, which could result in more losses for the coin.
Today on May 27, US stock futures are also going down.
Altcoins suffer heavy losses
This year, BTC has fallen, reversing most of its gains from the past two years. These losses are mostly on account of rising inflation and interest rate concerns.
Those reasons are still working, putting a damper on demand for the cryptocurrency. Altcoins have lost significantly more ground than bitcoin.
Due to the Terra recession, investors are now anticipating a number of new regulations in the crypto industry.