Market update: Crypto correction expands

The crypto market is still showing few signs of recovery - rather the opposite. Bitcoin, Ethereum and other cryptocurrencies are again posting losses at the start of the trading week.

Bitcoin and Ethereum under pressure

Bitcoin, the largest crypto currency based on market capitalization, fell about 4.35 percent in the past 24 hours. At one point, BTC even dropped toward the $80,000 mark. At the time of writing, however, Bitcoin managed to stabilize somewhat at $82,163.

Ethereum showed a similar picture, losing 5.8 percent on a daily basis. ETH's share price currently stands at $2,057.

Altcoins and derivatives markets

In the altcoin sector, losses ranged from 3.8 percent to 13 percent. The total market value of the crypto market fell 4.3 percent.

Liquidations worth about $617 million were carried out in the derivatives markets. Investors who speculated on rising prices were particularly affected: $526 million worth of long positions were liquidated.

Causes of the stock price decline

The reasons for the recent price declines are largely unchanged from recent days. On the one hand, the ongoing trade war under the Trump administration continues to put pressure on the market. On the other hand, weak labor market data in the U.S. are causing negative sentiment.

Last Friday published the U.S. Bureau of Labor Statistics (BLS) released its figures on new employment. The results were disappointing: the number of new jobs outside the agricultural sector rose by only 151,000, while analysts had counted on 159,000 new jobs.

These figures give the US Federal Reserve (Fed) little reason to cut interest rates in the short term. According to data from the Chicago Mercantile Exchange (CME), analysts do not expect a possible interest rate cut until June.

Hopes for crypto support remain dashed

Earlier, crypto investors had hoped for positive momentum following announcements by Donald Trump about the creation of a crypto reserve. However, this support was lacking, as initially only seized crypto currencies will be added to the reserve - with no new purchases.