Steep Declines for Cryptocurrencies Signal Correction Wave

Cryptocurrencies are witnessing a correction wave with continuous declines, following recent surges to new record highs.

Bitcoin is extending its losses, with the largest digital currency in terms of market capitalization, down by about 11% over the past 24 hours, trading near $38,300, extending its losses over the past seven days to nearly 30%.

Market expectations are leaning towards further decline for crypto assets, especially with the current declines in the stock market negatively impacting risk appetite among investors.

Gains over the past five sessions in gold prices are evidence that Bitcoin is not linked to safe haven assets, especially following the recent decision by Tesla, a major institutional investor in the cryptocurrency, to no longer accept the currency as a payment method due to environmental concerns about its energy-consuming mining.

Etheruem is also down about 22.5% for the day at $2,615, increasing its losses over the past seven days to more than 35%.

As for the Dogecoin, which has been recently seeing increasing vibes, it dropped by 25% for the day, abolishing earlier gains, trading at $0.3576.