The world's largest cryptocurrency, Bitcoin, was trading at $27,532.73 at 3:00PM HK/SIN amid mixed Tuesday morning trading in Asia. Bitcoin has dropped around 5.9% over the past seven days. Despite the drop, Bitcoin has still managed to post gains of around 42.5% so far in 2021.

The second-largest cryptocurrency by market capitalization, Ethereum (Ether), rose 1.24% to US$1,461.74. Ether's increase of almost 9.5% over the past seven days brings its 2021 yield to 101.6%.

Dogecoin, the meme-inspired altcoin, surged close to 20% in the past 24 hours to US$0.055, rallying after Twitter Chief Executive Officer Elon Musk made a subtle reference to the coin by switching his Twitter icon and background to images of the Dogecoin logo. Twitter followers and investors of Dogecoin have been quick to take credit for Musk's changed look.

The downturn in Bitcoin also comes in the wake of Monday's mixed trading session in the U.S. equities market, as investors weighed news that the Organization of the Petroleum Exporting Countries (OPEC+) unexpectedly cut oil production and data showing a slowdown in U.S. manufacturing. The Dow Jones Industrial Average rose 0.13%, while S&P 500 dipped 0.45% and the Nasdaq Composite fell 1.47%.

Cryptocurrency markets have been increasingly impacted by macroeconomic news, as evidenced by this week's correlation between crude oil prices, U.S. equity indexes, and Bitcoin prices. Cryptocurrencies are known to be highly volatile and are subject to market and price volatility. Tuesday's trading session has indicated Bitcoin's minute-by-minute price action being significantly affected by Ethereum and Dogecoin activity.

In Tuesday morning's trading in Asia, the world's biggest cryptocurrency, Bitcoin, was seen to dip below the US$28,000 mark. Despite this, the crypto asset still managed to bring a 42.5% yield so far this year. Meanwhile, Ether, the second largest crypto asset by market capitalization, rose 1.24% to US$1,461.74, bringing it a gain of 9.5% in the seven-day span, and a 101.6% yield for 2021. The most drastic change on Tuesday was experienced by Dogecoin, which caused a stir on social media with a 20% surge in the past 24 hours. This surge was sparked after Twitter CEO Elon Musk opted to use the Dogecoin logo as his icon and background on the website.

The correlations between crude oil, US equities and the cryptocurrency market have become more apparent this week, as Monday's mixed US trading session and the OPEC+ unexpected cut in oil production had a noticeable impact on Bitcoin's minute by minute price action. Investors should note that the high volatility of cryptocurrencies continues to be a potentially high-risk factor when making investment decisions. With the impact of macroeconomic news on the crypto markets continuing to be seen, a prudent approach to trading is advice that should be followed at all times.



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