Cryptocurrencies are falling as inflation fears and a slump in retail stocks pull down the stock market.
Cryptocurrency prices were falling on Wednesday as tumbling retail stocks and inflation fears battered Wall Street.
Bitcoin was down about 4% to $28,998, and down nearly 60% from its Nov. 10 high of $69,044.77.
Ethereum lost 4.5% to $1,961 and dogecoin was off 4.7% to $0.085271 at last check, according to CoinGecko.
Hawkish Comments From Fed
Cryptocurrencies and the stock market used to operate independently, allowing investors to move their assets from one to the other depending upon which of the two was moving higher.
The arrangement has come undone, however, and both markets were falling on May 18.
The Dow Jones Industrial Average was down over 1,000 points, or 3.2%, recently as Target missed Wall Street’s first quarter earnings estimates, one day after after Walmart (WMT) – Get Walmart Inc. Report posted weaker-than-expected fiscal-first-quarter earnings and reduced its full-year profit forecast.
“The narrative is shifting from inflation scare to recession scare on the heels of hawkish comments yesterday from Fed chairman, Jerome Powell, which is further dampening risk appetite,” said Cliff Hodge, chief investment officer, Cornerstone Wealth. “Getting inflation under control is clearly top of mind at the Fed, but ultimately we think the Fed’s bark is going to be stronger than the bite.”