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Cryptocurrencies experienced a downturn alongside the broader financial market as investors reassessed their positions, relinquishing more than half of the substantial gains from Wednesday’s remarkable rally.
Bitcoin’s value has seen a decline of over 3%, currently sitting at $79,614.34, according to data from Coin Metrics. Similarly, Ether has plunged nearly 8%, while Solana’s SOL token has fallen by more than 6%.
The S&P 500 index also reported losses, dropping more than 3%. Coinbase shares decreased by 4%, with bitcoin proxy Strategy witnessing an 8% loss.
Investor sentiment is increasingly cautious, particularly in light of the temporary relief from some tariffs that President Donald Trump had announced on Wednesday. This announcement initially sparked optimism in the market, leading to the S&P 500 experiencing its most significant gain since 2008. However, concerns remain regarding the potential for economic slowdown, particularly aimed at China with notably higher tariff rates.
Despite the recent turbulence influenced by tariff announcements, many market participants have noted bitcoin’s surprising resilience. With bitcoin currently trading around the $79,000 mark, it remains just below the $80,000 support level that has held firm throughout much of the year.
In the recent past, the volatility observed in bitcoin has mirrored that of the S&P 500, albeit with stark differences in price behavior. Traditional stocks rarely see the intense fluctuations that bitcoin is known for; therefore, small movements in bitcoin can appear trivial compared to equivalent shifts in major stock indices.
“While it’s well-understood that BTC remains closely linked to market sentiment, its ability to withstand the latest market turmoil is commendable,” noted Read Harvey, an analyst at Wolfe Research, in a statement on Wednesday. “This resilience enhances our perspective of bitcoin as a dependable store of value, especially considering that the market has declined almost twice as much as BTC over the past month, highlighting its strength.”
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