Bitcoin holds above $66,000 despite global stock downturn

by Brian McGleenon

Market Updates • May 17, 2024, 7:02AM EDT

Published 1 minute earlier on

The Block

Quick Take

Bitcoin is holding above the $66,000 mark, despite a downturn in Asian and European stocks, and U.S. stock futures.

Following Thursday's post-CPI risk-on moves, the cryptocurrency market experienced a modest pullback of around 1% for bitcoin and 3% for ether. However, in early European trading hours, the prices of both saw slight gains — with bitcoin now holding above $66,200 and ether above $3,000.

In contrast to the cryptocurrency market cap, which posted a modest gain of 0.3% in the past 24 hours, global equities experienced a pull-back. European shares retreated on Friday, following a decline in Asian stocks and U.S. futures.

Major European and UK equity indices were red in morning trading. In London, the FTSE 100 posted a 31.66-point decrease to 8,406.99 — a fall of 0.38%. The regional Stoxx 600 index traded down 0.27% in Europe to 522.23. In Tokyo, the Nikkei 225 declined by 0.3% to 38,787.38, while Australia's S&P/ASX 200 fell by 0.9% to 7,814.40. South Korea's Kospi also dropped by 1% to 2,724.62.

U.S. stock futures were down, with the Nasdaq Composite decreasing by 0.26% and the NYSE Composite decreasing by 0.33% in pre-market trading.

China uncertainties wobble markets

ActivTrades analyst Pierre Veyret attributed the global stock downturn to signs of macroeconomic stress in China.

"In addition to the prospect of further U.S. tariffs on Chinese goods, poor home sales and consumption data in China provided investors with a valid reason to take some of this week’s profits out, leading benchmarks to pull back towards freshly established floors," Veyret said in an email sent to The Block.

However, the analyst noted that it is still too early to declare Friday's downturn a bearish reversal for riskier assets. He said that this week's upward momentum, driven by the prospect of lower inflation and a tighter employment market in the U.S., could remain difficult to counteract. "With that in mind, we see today’s early price action as a 'technical' pull-back," Veyret added.

On Friday, bitcoin traded flat at $66,232, while ether increased by 1% to $3,022 at 6:16 a.m. ET., according to The Block's Prices Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has increased by 0.86% to 134.83 in the past 24 hours.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].