Bitcoin fell to its lowest level since July 2021 on Monday as plummeting stock markets continued to hurt cryptocurrencies, which currently trade in line with so-called riskier assets like tech stocks.
itcoin fell as low as $32,763.16 just before midday in Europe, in its fifth straight falling session.
The cryptocurrency is down 13 percent so far in May and has lost more than half of its value since hitting an all-time high of $69,000 in November last year.
“I think everything within crypto is still classified as a risky asset, and similar to what we’ve seen with Nasdaq, most cryptocurrencies are being thrashed,” said Matt Dibb, COO of Singapore-based crypto platform Stack Funds
The tech-heavy Nasdaq fell 1.5 percent last week and is down 22 percent for the year to date, weighed down by the prospect of persistent inflation, which has forced the Federal Reserve to hike rates despite slowing growth. Nasdaq futures fell another 2.3% on Monday.
Mr Dibb said other factors behind the decline over the weekend – Bitcoin closed around $36,000 on Friday – were the crypto market’s notoriously low liquidity over the weekends and also short-lived fears that algorithmic stablecoin dubbed Terra USD (UST) will break its peg the cryptocurrency could lose dollars.
Stablecoins are digital tokens tied to other traditional assets, often the US dollar.
UST is being closely watched by the crypto community, both for the novel way it maintains its 1:1 dollar peg and because its founders may have plans to build a $10B Bitcoin reserve in UST potentially spilling over into the bitcoin markets. Continue reading
Ether, the world’s second-largest cryptocurrency, which underpins the Ethereum network, fell to $2,360 on Monday, its lowest level since late February.
https://www.independent.ie/business/bitcoin-now-50pc-below-its-peak-41631371.html Bitcoin is now 50 percent below its peak