U.S. stock market - coin decoupling deepens... altcoins plummet in the aftermath of 'panic sell'

Bitcoin and altcoins plummet amid strong daily performance in the U.S. stock market
Major altcoins turning blue, averaging more than 5% ↓
In the market, “funds concentrated in altcoins headed to the U.S. stock market”

While the U.S. stock market was performing well, the digital asset (cryptocurrency) market showed sluggish market trends, and the trend of decoupling between the U.S. stock market and the digital asset market became more evident. In particular, altcoins belonging to the 'risky asset group' were unable to overcome the aftermath of the 'panic sell' and plummeted during the day.

The digital asset market continued its sluggish trend from the morning of the 18th. While Bitcoin showed weakness, most altcoins fell vertically.

The prevailing analysis is that the reason for the sharp decline in the digital asset market is that funds concentrated in digital assets were directed to the US stock market. The three major indices in the U.S. stock market continued their unusually strong market on the 17th (local time). While the S&P 500 index and large technology stocks soared, the 'fear index' of the US stock market was at a very low level.

While the U.S. stock market continued its strength, the decline of altcoins, including Bitcoin (BTC), which is considered the 'highest risk asset', deepened. The stock market is also considered a risky asset, but the flow of money is directed to the stock market, which has a higher level of safety in terms of fund flow.

Bitcoin collapsed below the $65,000 level, and altcoins plummeted massively. Major altcoins, excluding Ethereum (ETH), plunged by more than 5% on average, and digital asset investors complained of intraday fear.

◇Bitcoin = As of 5 p.m. on the 18th, the price of Bitcoin (BTC) is 92.59 million won as of Upbit. Bitcoin market share (dominance) was 56.20%.

Bitcoin continues to decline every day, but experts still remain optimistic predicting Bitcoin's rise.

Binance CEO Richard Teng appeared on the Bankless YouTube channel on the 17th and said, “Bitcoin will exceed $80,000 before the end of this year.”

He continued, “I think 2025 will be a better year than 2024 for the digital asset industry as a whole because the overall macroeconomic situation will be much better.”

He added, “We will probably see an interest rate cut later this year, and a better macroeconomic environment and a better interest rate environment are coming,” adding, “I think this situation could push digital asset prices up in 2025.”

◇ Rising Coin = As of Upbit at 5pm on the 18th, the digital asset that recorded the largest increase compared to the previous trading day was ELF, showing an increase of approximately 23%.

ELF Coin is one of the 3rd generation blockchain platform coins developed to solve the blockchain problems of Bitcoin and Ethereum, which aim for blockchain-based Linux operating systems.

ElfCoin supports smart contracts with cloud computing and is used for smart control, system operation, and upgrade resource costs.

◇Fear and Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the ‘Greed’ stage with 74 points. The greed stage is the stage where price volatility and trading volume increase, and is the stage where prices rise. There is a high possibility of a short-term peak forming, so one must be cautious when selling.

Reporter Seungwon Kwon ksw@