Bitcoin extended its five-week slide from an all-time high with global financial markets at risk of falling.
The largest cryptocurrency by market cap fell 2.5% to $45,583 in New York on Monday. It has lost nearly 32% since hitting a record high in early November. Ethereum fell by 4.3%, while popular DeFi tokens such as Solana, Cardano, Polkadot and Polygon also slipped.
Central banks globally are prioritizing the fight against increased inflation by tightening monetary settings, while also monitoring the effects of Omicron. Against that backdrop, investors are questioning whether so-called riskier assets such as cryptocurrencies and technology stocks are due for a rough patch after rising from pandemic lows.
Bitcoin is also facing some price levels that technical analysis looks for for signals of future direction. The digital currency is sitting at its 55-week simple moving average. The token has usually bounced higher after reaching the level several times in the past.
Bitcoin fell for five consecutive weeks for the seven days ended Friday. Unlike most traditional asset classes and securities, digital tokens trade around the clock, often on lightly regulated online exchanges around the world.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,