Bitcoin lost about 2% on Tuesday morning and is trading just below $77,000. Monday's rebound was erased overnight.
The trigger came from the US stock market. The Nasdaq 100 index fell 10% from its recent high and entered a correction. A correction is a drop of 10% or more from the last peak. The Nasdaq 100 itself gathers the largest companies on the Nasdaq exchange, mostly technology ones.
This affects traders directly. Large coins are falling alongside US stocks; the reason for the decline lies outside crypto.
Which coins fell the most?
The crypto market turned almost entirely red. The decline swept across the entire list of large assets.
- ZEC - down about 10% to $1,140, even though the day before it was the leader among large coins.
- HYPE - down 5% to $84.
- SOL - down 3% to $92.
- BNB - down 2% and below $700.
- ETH - down 2%, just above $2,250.
- XRP - almost unchanged, $1.25.
- TRX - the only gainer among the large ones, about +2%.
Why isn't the cause in crypto?
The sell-off began in stocks. A basket of US chipmakers lost 12% in three days, and the S&P 500 slipped 0.5%.
- Kospi. The Korean index fell more than 3%.
- MSCI Asia Pacific. Down almost 1%; markets in Japan were closed for a holiday.
- China. Stocks declined even after the central bank promised to push financial institutions to use market support tools.
The yuan broke a 13-day winning streak - the longest since 1996. The People's Bank of China asked banks to hold more currency in reserves.
What does this mean for a trader?
BTC had a chance to extend the rebound. On Monday it rose to $78,750 after the weekly close, but failed to break resistance at $78,500. By the New York open, the price was back below $77,000.
- WTI - down 7% to $96.50, with a low of $95.15, the lowest since October 15.
- Brent - down 9% to $103.30.
- Gold - up about 2% and above $3,950 per ounce after a 13-month low of $3,891 on Friday.
The trigger for oil is geopolitics. The market expects the war with Iran to be nearing its end. US Secretary of State Marco Rubio said Trump would prefer to end the conflict peacefully.
Key point: BTC's price is currently being set by the US stock market. The Nasdaq 100 has entered a correction, and large coins followed it.
What's next?
The next point is the US midterm elections.
- November 3. Midterm election day.
- Wednesday. First results are expected by the Asian market open.
What to watch. Dates for the US market are in the economic calendar, and account parameters for this kind of volatility are easy to check in the challenge calculator.
Were you staring at a red screen during the Asian session?
A move of a few percent across the entire list of coins overnight makes the account's nominal size the main thing. With a deposit of a couple thousand, two percent on BTC changes nothing, yet the risk and the nerves are the same as for someone with a hundred-thousand-dollar account. Prop trading was invented precisely as a way to get a company trading account: you pay for the selection, pass it, and trade its nominal capital for a share of the profit. It's easier to get to grips with this chain on a calm day. The middle of the next sell-off is a poor time for it.