Bitcoin And Ethereum Post Worst Start To A Year On Record: Fortune
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The industry’s largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), are enduring one of their most difficult openings to a year on record, according to a recent analysis by Fortune, with both digital assets trading sharply below their previous peaks.
Bitcoin is currently down roughly 46% from its all-time high, while Ethereum has fallen about 60% from its record level. The steep declines mark what the publication describes as historically poor year-to-date performances for the assets.
Bitcoin, Ethereum Lag While S&P 500, Gold Post Gains
While Bitcoin and Ethereum, along with broader crypto prices, have often moved in tandem with equities in recent years, that relationship has weakened over the past two months. Since January, major US stock indices have edged higher.
The S&P 500 has gained approximately 0.4%, and the Dow Jones Industrial Average has climbed 2.3%. Precious metals have also performed strongly. Gold has surged about 17% since the start of the year, while silver has advanced roughly 14%, even after experiencing a brief drop several weeks ago.
The disconnect between cryptocurrencies and broader market gains has prompted some industry observers to declare the arrival of another “Crypto Winter.”
“We’re certainly in a Crypto Winter,” said Danny Nelson, a research analyst at crypto asset manager Bitwise. He pointed to investor behavior as evidence of deteriorating sentiment. “You can tell by how investors react to good news,” Nelson said. “They don’t.”
‘We’re Really Close To The End’
Despite the current pullback and the increased challenges for prices seen since the October 10 liquidation event, Nelson argues that the underlying foundation of the industry is strengthening.
“Crypto’s reality is getting stronger,” he said, adding that the structural changes underway are likely to outlast the current downturn.
Similar sentiments have been expressed by Tom Lee, cofounder of research firm Fundstrat and a long-time supporter of Ethereum. In a recent interview, Lee suggested the market may be nearing a turning point, stating, “We’re really close to the end.”
Whether the latest slump proves to be a temporary correction or a deeper cycle shift remains uncertain. For now, however, the data underscores a challenging start to the year for the cryptocurrency market, even as other asset classes continue to surge.
At the time of writing, Bitcoin is trading at $67,595, which is a slight 1% increase compared to Thursday’s prices. Ethereum is trading at around $1,968, with similar gains over the past 24 hours.
Featured image from OpenArt, chart from TradingView.c
source: https://www.tradingview.com/news/newsbtc:fdd14ae9f094b:0-bitcoin-and-ethereum-post-worst-start-to-a-year-on-record-fortune/