Bitcoin and Ethereum—the two largest cryptocurrencies by market cap—are down by approximately 8% over the last week. 

Both cryptocurrencies, priced at $40,200 and just a tick over $3,000, are also edging closer to falling below landmark prices. 

This already happened earlier this week, when Bitcoin and Ethereum fell by 15% and 14%, marking the first time each asset fell below $40,000 and $3,000 since mid-March.

This price slump remains part and parcel of an ongoing market downturn in the broader crypto industry. 

Crypto markets

The crypto market tumbled by almost 10% earlier this week, causing the crypto market capitalization to drop to $1.84 trillion, per CoinMarketCap. 

One of the most plausible reasons behind this downturn lies in similar slumps found in the equities markets. 

At the start of this week, the S&P 500 was down 1.7%. The Nasdaq—a tech-focused exchange that often signals what might follow in crypto—shed over 2% of its total value at the start of this week too. 

Bitcoin, in particular, has been correlating with traditional equities markets. Arcane Research recently revealed that Bitcoin’s price correlated with the S&P 500 more so in March than in any time since October 2020. 

Defi and meme coins

While most of the crypto market is in the red, some cryptocurrencies are defying the broader trend. 

Those include meme cryptocurrencies like Shiba Inu and ApeCoin, which recently climbed by about 20% and 10%. Shiba Inu was buoyed by a recent Robinhood listing. 

In the world of DeFi, Thorchain and Compound have led a market recovery of sorts with recent gains of 17% and 16%.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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