Dow Plunges 832 Points, Sell-Off Bleeds Into the Crypto Market
The Dow Jones Industrial Average just experienced its third-worst day by total points lost, falling 832 points (-3.15%) on Wednesday.
The market drop was primarily driven by the tech sector, with the Nasdaq down over 4% and the Technology Select Sector SPDR (XLK) down 4.85%. Experts are pointing to recent spikes in rates for the benchmark U.S. 10-Year Treasury as a possible indicator that the ten-year bull-run is coming to a close.
With global markets feeling the pressure from the U.S. sell-off, the cryptocurrency market has also begun to sell-off in recent trading. The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, has fallen 6.5% in the last few hours.
Bitcoin (BTC), which has been experiencing a significant period of stability, has also traded lower, now down around 4.5% to $6,301. Given that investors have often pointed to Bitcoin and other cryptocurrencies as an alternative store of value, the upcoming trading sessions may help show whether the asset class is mature enough to weather a global downturn.
Photo: Abhisit Vejjajiva / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.