coinquora.com
Twitter user Wu Blockchain posted a tweet reflecting on the close of the crypto and stock markets on May 27. The tweet stated, “In the past 24 hours, Ethereum fell below $1,800, and the overall cryptocurrency market fell 4.1%. The Nasdaq closed up 2.68%, while Tesla rose 7%. The U.S. stock market and the cryptocurrency market have rarely seen a different trend.”
Before the pandemic, crypto assets like BTC and ETH showed little correlation with major stock indices. This changed after the central bank crisis responses of early 2020. The correlation coefficient of their daily moves was just 0.01, but it later jumped to 0.36 for 2020-21.
Regarding Ethereum’s price, this is the second time this month that Ethereum’s price fell below $1,800. This comes as the crypto and stock markets are trying to recover from a widespread retreat. The last time it fell below the $1,800 mark was in July 2021. Ethereum has also been grappling with anticipation for its massive software upgrade.
Yesterday, the crypto market cap fell 4.1%. The digital assets market resumed its months-long downfall as sell-offs hit many of the space’s leading projects. The two biggest cryptocurrencies, Bitcoin and Ethereum, fell 2% and 6.8%, with Bitcoin extending its record streak of eight weekly losses in a row.
Several of the top Layer 1 blockchains as measured in user activity and total value locked in their DeFi ecosystems have posted some of the biggest losses in the market.