BTC Crash Is Good For Stock Market
$Future FinTech Group Inc.(FTFT)$
A cryptocurrency crash has already wiped out $600 billion in digital asset market value over the past week.
It hasn’t been a rosy time for stocks, either. Wednesday marked the end of the worst five-day stretch for Dow industrials since mid-2020.
But Bitcoin’s pain could be the stock market’s gain.
Bitcoin is breaking down, with the largest crypto losing more than a quarter of its value in the past week and plunging to around $28,000 on Thursday—a far cry from the record high above $68,000 reached just six months ago.
With the declines in crypto outpacing those in stocks, Bitcoin may actually be a bellwether for capitulation among investors—that point when the market can really find a bottom, according to analyst Barry Bannister at Stifel.
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Latest Crypto News
Shares of Robinhood, a popular stock and crypto trading platform, jumped more than 23% in Friday's premarket. In regular trading Thursday the stock hit an all-time low. Robinhood ended the session priced at $8.56, about 77% away from its IPO price last July.
The document said Bankman-Fried does not plan to take "any action toward changing or influencing the control" of the company. The filing also said he may "from time to time engage in discussions" with management.
Latest Stablecoin News (BTC as wel)
The stablecoin saga has added a layer of uncertainty that's contributed to sharp declines across the entire crypto market. Bitcoin on Friday was back above $30,000, rebounding from levels not seen since late 2020. At current levels, bitcoin, the world's largest cryptocurrency, was down more than 50% from its all-time high of over $68,000 in November.
Stablecoin saga
Tether, the world's largest stablecoin, regained its peg to the dollar after more than $3 billion worth of tokens left the system in a single day. The cryptocurrency — which is meant to always be worth $1 — sunk as low as 95 cents on Thursday. A controversial stablecoin known as TerraUSD or UST, which is supposed to be pegged 1-to-1 with the dollar, has collapsed in recent days, trading around 8 cents Friday. Luna, a token closely associated with UST, is now worth $0 as a result.