Bitcoin extends drop as stock futures point to further weakness

Investment And Finance Concept - Bitcoin Symbol Sitting On Yellow Financial Graph Background

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Bitcoin (BTC-USD) continues to plunge in Friday morning trading as stock market futures imply further weakness out of the gates.

The global crypto market cap is dropping around 8% to $1.66T compared with its record high of $3T six months ago -- about the same time when bitcoin (BTC-USD) and ethereum (ETH-USD) peaked.

Over the past 24 hours, the world's largest digital coin by market cap is sliding nearly 10% to $35.8K at the time of writing. Ether (ETH-USD) is tumbling almost 9% to $2.68K. Meanwhile, all three major stock market futures are extending losses from Thursday's selloff. Dow Futures (INDU) are off 0.5%, S&P Futures (SPX) -0.6%, Nasdaq Futures (NDX:IND) -1%, as investors weigh April jobs data. 428K jobs have been added to the economy last month, exceeding the consensus of 391K and unchanged from March.

“Bitcoin has been surprisingly quiet today given the turbulence in other asset classes. However, the overnight fall in the markets leading cryptocurrency provides another reminder that Bitcoin is highly correlated to movements in U.S stock markets. Where the Nasdaq goes, Bitcoin is sure to follow,” City Index Market Analyst Tony Sycamore wrote in a note to CoinDesk.

Furthermore, the correlation between bitcoin (BTC-USD) and the tech-heavy Nasdaq recently hit a new all-time high at around 0.75, as speculators are shy away from risk assets amid a more hawkish Fed and looming recession risks, according to a Twitter post from The Daily Shot.

Looking at some proxies of the first-ever crypto, Grayscale Bitcoin Trust (OTC:GBTC) -0.2% is also extending losses in premarket trading, ProShares Bitcoin Strategy ETF (BITO) -1.3%, Valkyrie Bitcoin Strategy ETF (BTF) -1.6% and VanEck Bitcoin Strategy ETF (XBTF) -1.2%.

Some of the biggest losers among major cryptos are: binance coin (BNB-USD -6.1%), ripple (XRP-USD -4.7%), terra (LUNA-USD -4.5%), solana (SOL-USD -9.2%), cardano (ADA-USD -7.0%), avalanche (AVAX-USD -11.3%), polkadot (DOT-USD -8.8%), polygon (MATIC-USD -7.8%), near protocol (NEAR-USD -13.3%), bitcoin cash (BCH-USD -8.3%) and chainlink (LINK-USD -9.1%).

Earlier this week, (May 5) bitcoin gave up multi-month gains as stocks got slammed.

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