Bitcoin on Record Losing Streak

For the first time in history, Bitcoin has lost territory for eight weeks in a row, and it will continue to lose ground if it does not recoup $30,300 in the next three days.

Ether is trading at its lowest level relative to Bitcoin in seven months, indicating that investors may be shifting their focus away from the world computer and toward so-called digital gold.

The ETH/BTC ratio is at 0.061, the lowest since October, as ETH has dropped 37% in the last 30 days, compared to BTC’s 23% drop. ETH is currently selling at $1,760, its lowest level since July 2021, while BTC is currently trading at $29,000.

Traders are flocking to the first and largest cryptocurrency as the market falls. Investors are growing more risk-averse as the Federal Reserve of the United States prepares to keep raising interest rates to combat rising consumer costs. The central bank raised interest rates by 50 basis points on May 4, the highest increase in two decades. Bitcoin’s share of the overall cryptocurrency market, popularly known as “Bitcoin dominance,” is rising above 40% after falling below 40% for the first time since 2018.

Cryptocurrency has traded in lockstep with equity markets for the past few quarters. Today, though, was an exception. While the Nasdaq rose 3%, Ether fell 7%, with most altcoins faring worse. Bitcoin fell 1% for the day. Move-to-Earn NFT craze STEPN was today’s worst performer, falling 36% to $23.

Layer-1 blockchain Avalanche was severely hit, falling 17% to $23. It is presently down 84% from its all-time high. ApeCoin is currently trading 16% lower at $6.13.

The total value locked in DeFi is $83 billion, down 5% on the day and more than $100 billion from last year’s highs.