Bitcoin, the largest cryptocurrency by market cap, fell more than 7% on Monday to its lowest since July, as fears of a Russian attack on Ukraine fueled selling of the risky asset.
Bitcoin was last trading down 6.8% at $33,820, having lost 50% from its all-time high of $69,000 in November.
Ethereum was down 11% at its lowest level since July 29. It was last trading at $2,253.
Smaller cryptocurrencies, which operate in tandem with bitcoin, have also declined.
US-listed miners Riot Blockchain, Marathon Digital and Bit Digital slipped between 7.3% and 12% in premarket trading, while crypto exchange Coinbase Global dropped 7.8%.
Bitcoin is moving with stocks both bearish like never before, but this link-up could bring some relief to the biggest cryptocurrency yet if the shares stage a rebound.
The 40-day correlation coefficient for the digital token and the tech-heavy Nasdaq 100 has risen to around 0.66, the highest among the figures compiled. bloomberg since 2010. A similar correlation with the S&P 500 is also on record.
Strategists, including Yardney Research President Ed Yardney, have been pushing the idea that equity sentiment is due for a snap back, setting the stage for a rebound in stocks after a recent decline. Such a revival could give a boost to bitcoin and other coins, at least for the time being.
“Stocks should improve in the coming months as bond markets stabilize and corporate earnings continue to rise,” Peter Berezin, chief global strategist at BCA Research Inc., wrote in the note. ,
Cryptocurrencies have skidded on the prospect of a reduction in Federal Reserve stimulus that has fueled speculative assets through the pandemic. More than $1 trillion has been erased from digital coins since the November high. Bitcoin resumed Monday, falling 2.5% to $34,614 in Hong Kong at 5:21 p.m.
Chris Weston, head of research at Pepperstone Financial Pvt Ltd, said the area is “grossly oversold, but momentum is negative and rallies are likely to be sold out.”
BCA’s Berezin is skeptical about bitcoin as a whole, although he sees the potential for short-term gains when the stock recovers. His long-term goal for this is just $5,000. He added that risk-averse investors should consider going longer on Cardano, Solana and Polkadot versus Bitcoin, Litecoin and Dogecoin.
with agency input
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