Bitcoin Holds On Despite Stock Market Sell-Off
Despite there being a rut in the global stock markets, digital currencies seemed to come out the other side relatively unscathed.
Earlier today, the Asian markets dropped quite significantly, with the stock indexes in Shanghai and Shenzhen both falling more than 5%.
Yesterday, Bitcoin fell by 0.23% leaving it at around $6,490 while XRP saw a loss of 2.09% and Ethereum drop by just 1.38%. But it isnât new to see other digital currencies follow the lead of Bitcoin.
In the Greater China region, the Hang Seng index has dropped by just under 4% in the afternoon trade. On the mainland that Shanghai composite fell by over 5%.
As reported by CNBC:
âThe fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information.â
The sturdy performance amongst digital currencies opposed massively to the last time there was a huge stock market sell-off.
Two weeks ago on 11th October, Bitcoin fell by more than 4% and both XRP and Ethereum crashed more than 11% during the Asia trading hours alone according to data from CoinMarketCap.
Over the course of three days, digital currencies as a whole saw over $15 billion of their value vanish into thin air as the markets around the globe saw a drop.
The CEO of the cryptocurrency hedge fund BitBull Capital, Joe DiPasquale said then that the uncertainty around the stocks bled into the digital currency markets.
Speaking on the matter, DiPasquale said:
"When we saw equity markets crumble, there was some fear in the cryptocurrency market as well. I think there was an initial jolt due to larger market activity and the sell-off."
The move on 11th October also coincided with the release of a report by the International Monetary Fund, where it stated:
"Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system."
At the current time of writing, most of the market is in red with Bitcoin on a 0.37% dip (priced at $6,476) Ethereum with a 0.76% drop (currently priced at $203 exactly) and XRP having a 1.57% drop (priced at 0.4547).
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