Bitcoin (BTC) had another poor showing on the spot markets on Wednesday, crashing below the $27,000 price point and marking the fourth straight day of red candlesticks.
The benchmark cryptocurrency is trending away from the blue-chip Nasdaq index, which is having a strong week in comparison.
Tailwinds supporting global equities, namely dovish Federal Reserve comments leading to hopes of a peak in the central bank’s interest rate hikes, do not appear to be supporting bitcoin.
Bitcoin acted as something of a safe haven in recent bouts of volatility, so investors are potentially recalibrating their portfolios away from the cryptocurrency markets and towards the stock market in response to softer inflation figures.
However, risk-on assets across the board could come under short-term pressure following the hotter-than-expected producer price index (PPI) September print on yesterday, which suggested that the fight against inflation is not over yet.
Bitcoin, at the time of writing, was swapping for $26,887 and was facing stiff selling resistance at the 27k price point, according to Binance’s order book.
Bitcoin is down near 12% over six months – Source: tradingview.com
In contrast, the second-largest cryptocurrency Ethereum (ETH) fared okay on Wednesday, with barely any movement clocked on the spot markets.
But with its spot price in the mid-$1,500 range, ether has seriously underperformed bitcoin over the medium term, losing nearly a quarter of its value over the past six months.
It’s a sea of red in the broader altcoin space, with the likes of Ripple (XRP), Cardano (ADA), Solana (SOL), Dogecoin (DOGE) and Polygon (MATIC) racking up mid-to-high single-digit-losses over the past seven days.
Telegram-linked Toncoin (TON) is the one outlier, having added around 2%.
Global cryptocurrency market capitalisation currently stands at $1.05 trillion, with bitcoin dominance slipping below 51% overnight.
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