According to the latest development in the cryptocurrency market, the mayhem led by a decrease in the prices of Bitcoin is proving too much to handle for the altcoins such as Shiba Inu, Terra, and Avalanche. As per the data shared by CoinMarketCap, all these stablecoins have been declined by more than 10% in the last 24 hours.
It is important to note that Bitcoin has slipped to its low intraday value of around $47,400, which sent the entire market into a tizzy. There are some bright spots in the form of performance recorded by SushiSwap, ICON, and IOTA, although the list of the laggards is far longer than performers.
In terms of the percentage of decline, Bitcoin has retraced around 8% from its local peak level attained in this particular week. Like most of the other situations, there is no immediate reason that can be attributed to this particular decline of Bitcoin.
This decline in the prices of cryptocurrencies came in the backdrop of the wonderful performance of the S&P Index, which has logged at the level of its 70th all-time high performance in this particular year. This disparity in the performance of stocks and digital currencies might be giving us a preview of the future where it would be difficult to ascertain whether these two classes of assets will perform parallel to each other or not.
There are interesting observations from both crypto enthusiasts as well as skeptics who are finding it difficult to make sense out of this particular situation. Different experts have their different opinions, with some still having a hope that Bitcoin will emerge as a winner while other cast doubts on the performance and are skeptical about the recovery of the largest cryptocurrency by market capitalization.