Ethereum, Bitcoin see big drops amid global market turmoil, falling tech stocks


(MENAFN) Ethereum, the world's second-largest cryptocurrency, has experienced a substantial decline following a stock market rout that has unsettled global markets. The cryptocurrency fell by about 6 percent, marking its biggest drop in three weeks, and traded at USD3,170 during trading. Concurrently, Bitcoin, the largest cryptocurrency, saw a decline of approximately 3 percent, trading at USD64,110. These declines reflect broader market anxieties and a significant impact on investor confidence.

The plunge in major tech stocks triggered a sharp downturn in US stock markets on Monday, marking the worst day for US stocks since 2022, as enthusiasm for AI technology began to wane. This decline has had a ripple effect, weighing heavily on investor sentiment across various asset classes. Benjamin Seilermajer, co-chief investment officer at Magnet Capital, noted that after a challenging night for US stocks, cryptocurrencies appear to be similarly affected by the spread of negative sentiment among investors, mirroring the broader market dynamics.

Amid these market fluctuations, significant developments in Ethereum-related financial products have taken place. Last Tuesday, eight Ethereum ETFs were launched in the United States, signaling a growing interest in cryptocurrency investment vehicles. Additionally, the largest Ethereum fund, the Grayscale Ethereum Trust, which boasts assets nearing USD8 billion and was launched six years ago, was converted from its closed form into an ETF. These developments underscore the evolving landscape of cryptocurrency investment amidst ongoing market volatility.

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