BTC price fell to $21.000 as Stocks sank amid fears of new aggressive interest hikes
The S&P 500 and the Nasdaq index slumped, and the BTC prices declined by 6% to below $22.000. Today in the opening session Tech stocks declined and posted a 2.07% decrease by the end of the evening. The crypto market is on a downward trend falling near the June level of below $20.000.
The world’s largest second cinema chain Cineworld had lost more than 50% of its value after a shocking bankruptcy report. The U.K company repôrted today that the company can no longer compete and rebound to its pre-pandemic levels.
AMC stock declined by 6%, but its executives are optimistic and see a strong and high rebound soon. Cineworld inc is moving to rescue what is left in the company by hiring lawyers in both U.S and U.K.
The drops in many tech stocks today have caused a sell-off action among investors, and fears of an economic slowdown are not cooling down.
In the U.S mortgage lenders are frustrated more than ever, after rising interest rates. The housing market in the U.S is at its lowest, due to the Federal Reserve tightened policy. The Federal Reserve hints that there will be more high-interest hikes in the upcoming meeting, causing a sharp decline in Wall street.
Today, the S&P 500 declined by 1.5%, the Dow Jones is down by 89%, and the Nasdaq slumped by 2.07%. Treasury yields rose to 3.78% causing major concerns among mortgage lenders and home sellers in the U.S. According to Redfin CEO Glen Kilman, the housing market is not like it was once, a stable market. But now it experiences a downward trend, and its level of volatility is increasing. Since the start of 2022, the housing market affordability has declined as rising costs and building materials increased. Inflation has driven building costs to the roof, which results in affordable house prices. The labor shortage and low-income issues also affect the average consumer to simply afford to buy a new house.
As for the BTC prices, since January 2022, BTC has lost more than 63% of its price value. Expêrts believes that the sell-off movement will cause another hard decline to $18.000. Over the past 5 days, BTC’s price dropped by 12.03%, from $25.032 to $21.391. One of the market explanations is that the tech sell-off is what is causing this drop in BTC. Like when it happened in June when BTC traded below $20.000 after Nasdaq’s sharp decline and the terminal Celsius network.
Nasdaq has experienced some ups and downs in the past few weeks, causing a state of uncertainty among the BTC traders. Both the housing and crypto market is suffering from interest hikes and inflationary pressures.
Till now it’s uncertain whether the housing market will recover, but one fact remains solid: any further interest rates will cause more damage. Mortgage rates will hit their highest level, and mortgages will declare bankruptcy, with crazy house prices and low sales rates.