While traditional stocks saw modest gains during early trading hours Friday, the crypto market shed more than $13 billion over the past 24 hours, according to Nomics. Most large-cap cryptos fell more than 8 percent in that time period, with BTC’s 6.8 percent dip being the only exception.
Major cryptocurrency markets fell 7 percent over the past 24 hours, with bitcoin (BTC) retreating below $7,000.
The sell-off appears to have begun early UTC Friday.
According to CoinDesk’s Bitcoin Price Index, the world’s oldest cryptocurrency fell from about $7,300 at 01:00 UTC Friday to just above $6,800 as of press time, losing nearly $500 over 14 hours.
“Given some of the abruptness of the overnight move, it suggests that some larger holders were inclined to take profits at these relatively favorable prices,” David Nuelle, managing director of Hehmeyer Trading + Investments, told CoinDesk. “Other than that, I don’t see anything that would precipitate the market move.”
Still, Nuelle called bitcoin’s recovery from mid-March lows of roughly $4,100 “pretty impressive.”
“With other markets closed and it being a U.S. holiday, the crypto markets are generally feeling less liquid,” CMS Holdings Partner Bobby Cho told CoinDesk. “I don’t see this being an issue with crypto fundamentals, rather, short term market liquidity issues.”
In contrast to the crypto markets, traditional stock markets capped largely positive weeks. Both the S&P 500 and the Dow Jones Industrial Index saw major gains in the last four days of trading (markets were closed Friday for the Easter holiday), despite the economic hit caused by record job losses.
The U.S. saw 10 percent of its workforce laid off over a three-week period as a result of the ongoing COVID-19 outbreak. Jobless claims grew 6.6 million on Thursday, for a total of 16 million, according to CNBC.
Economies worldwide are bracing for an economic shock due to the pandemic. Germany and France are already seeing their economies slide into a recession, the New York Times reported Thursday.