China eases stimulus plan, cutting Bitcoin bull run short
September’s Chinese stock rally just saw an abrupt end as stocks fell alongside Bitcoin (BTC) and local authorities showed no plans to provide further market stimulus.
Hong Kong’s Hang Seng index is this year’s best-performing market, but on Tuesday, it lost 9.4% of its value in its steepest fall since 2008. The Shanghai Composite, on the other hand, closed 4.6% higher on Tuesday, while the CSI300 rose 5.9%—both green but much less so than the two-digit gains those markets have often shown.
Bitcoin is 0.5% down over the last 24 hours, after it nullified this weeks gains taking it over the $64,000 level. According to CoinMarketCap data, Bitcoin is trading at over $62,300 as of the time of writing, after losing over 2% over the last 24 hours.
The Block’s Bitcoin’s 30-day Pearson correlation graph shows that it is currently strongly correlated to United States stock markets. Bitcoin shows a 0.9 correlation to the Nasdaq composite and 0.89 to the S&P 500.
Uncertainty in the crypto market
The choppy markets come at a time when market participants are seemingly mostly undecided. The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment, currently stands at 49, indicating that sentiment is mostly neutral crypto market. In such cases, this instrument does not give any clear indication as to where the market is headed next.
Similarly to Bitcoin, Ethereum (ETH) has also seen less than favorable market conditions. According to CoinMarketCap data, Ethereum is trading at over $2,400 as of the time of writing after losing over 2.25% over the last 24 hours. Furthermore, the cryptocurrency that unleashed smart contracts on the world also lost nearly 4.4% over the last seven days.
This development follows recent rumors that the upcoming HBO documentary “Money Electric: The Bitcoin Mystery” will reveal the identity of Bitcoin’s (BTC) pseudonymous creator, Satoshi Nakamoto.
The top candidate according to participants in the decentralized crypto-powered prediction market Polymarket is American information privacy advocate, programmer, and cryptographer Len Sassaman. Market participants immediately started creating Sassaman-related memecoins with some growing over 150% within 24 hours.
The post China eases stimulus plan, cutting Bitcoin bull run short appeared first on ReadWrite.