[Bitcoin Now] Weakness Amid US Stock Market Plunge... Dropping to $38,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the U.S. stock market plunged, the price of the leading cryptocurrency Bitcoin also showed a downward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:57 PM on the 30th, the price of Bitcoin was $38,646 (approximately 48.81 million KRW), down 2.33% from the previous day.

Bitcoin prices declined following the U.S. stock market's negative close. On the 29th (local time), the Nasdaq Composite Index, centered on tech stocks, fell 536.89 points (4.17%) to 12,334.64. Additionally, the Dow Jones Industrial Average dropped 939.18 points (2.77%) to 32,977.21, and the large-cap S&P 500 Index closed at 4,131.93, down 155.57 points (3.63%). Amazon, the third-largest company by market capitalization, announced its first quarterly loss in seven years, causing its stock to plunge more than 14%, which led the overall index decline.

Cryptocurrency specialized media CoinDesk reported, "Bitcoin prices, which had risen to $40,200, fell following the stock market." It added, "Altcoins showed a larger decline than Bitcoin, reflecting investors' reduced risk appetite." At the same time, Ethereum, the leading altcoin, dropped 3.5%, while Solana and Ripple fell 3.59% and 2.84%, respectively.

Deng Hong, CEO of Satori Research, a Hong Kong-based cryptocurrency investment firm, explained, "Despite positive news such as institutional adoption of Bitcoin, Bitcoin prices continue to fail to gain traction due to macro factors like concerns over U.S. interest rate hikes." Earlier, Goldman Sachs launched a lending service that provides cash loans secured by Bitcoin collateral.