Why Bitcoin, Ethereum, and Dogecoin Plunged Today
The crypto market took it on the chin early on Friday and it wasn't the industry's fault. Instead, it was weak economic data that caused the sell-off. If you're wondering why cryptocurrencies aren't a hedge against the economy and inflation, you only need to look at history. The last time the economy slowed and inflation jumped, Bitcoin's value collapsed.
As of 1:30 p.m. ET, in the last 24 hours Bitcoin (CRYPTO: BTC) is down 3.6%, Ethereum (CRYPTO: ETH) is off 6.3%, and Dogecoin (CRYPTO: DOGE) is down 4.9%. Could the decline continue?
Like it or not, cryptocurrencies trade more correlated to growth stocks than they do as a hedge against inflation or the broader economy. In general, low interest rates are good and higher interest rates are bad. In a related note, low inflation is good for crypto and high inflation is bad.
Source Fool.com
