Bitcoin fell to its lowest level since January on Monday as slumping stock markets continued to hurt cryptocurrencies, which are currently traded in line with so-called riskier assets such as technology stocks.
Bitcoin slumped to a low of $33,266 in morning trading, testing the January low of $32,951. A drop below that level would be the lowest since July last year.
After that, it stabilized and traded around $33,500, down 1.4%.
“I think everything within crypto is still classified as a risk asset, and similar to what we’ve seen with the Nasdaq, most cryptocurrencies are being ravaged,” said Matt Dibb, COO of Singapore-based crypto platform Stack Funds.
The tech-heavy Nasdaq fell 1.5% last week and has lost 22% so far, hurt by the prospect of continued inflation forcing the US Federal Reserve to raise interest rates despite slowing growth. Nasdaq futures fell another 0.8% in Asian trading Monday morning.
Dibb said other factors in the decline over the weekend — bitcoin closed around $36,000 on Friday — were the crypto market’s notoriously low liquidity over the weekends, as well as short-lived fears that algorithmic stablecoin called Terra USD (UST) may be pegging its way. the dollar could lose.
Stablecoins are digital tokens that are linked to other traditional assets, often the US dollar.
UST is being watched closely by the crypto community, both for the new way it maintains its 1:1 dollar peg, and because its founders have plans in place to stock a $10 billion reserve in bitcoin. build to support the stablecoin, meaning volatility. in UST could potentially spill over to bitcoin markets.
Ether, the world’s second-largest cryptocurrency, which underpins the ethereum network, fell to $2,421 on Monday, its lowest point since late February.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)