Bitcoin has fallen to its lowest level since July 2021 on Monday as falling stock markets have continued to damage cryptocurrencies, which are now trading in line with so-called riskier assets such as tech stocks.
Bitcoin dropped to $ 32,763.16 shortly before 1100 GMT, in its fifth consecutive collapse.
The cryptocurrency fell 13 percent so far in May and has lost more than half of its value since it hit $ 69,000 in November last year.
“I think everything within crypto is still classified as a risk asset, and similar to what we have seen with Nasdaq, most cryptocurrencies will be depleted,” said Matt Dibb, COO of crypto-based Stack Funds in Singapore.
The tech-heavy Nasdaq fell 1.5pc last week and lost 22pc a year so far, saddened by the prospect of further inflation forcing the US Federal Reserve to raise prices despite slow growth. Nasdaq futures were even lower at 2.3pc on Monday.
Dibb said other factors in the downturn – the Bitcoin closed on Friday for about $ 36,000 – was a cryptomarket known for its relatively low value over the weekend, with short-term fears that algorithmic stablecoin called Terra USD (UST) could lose its pinnacle. dollar.
Stablecoins are digital symbols attached to other traditional assets, often in US dollars.
UST is closely monitored by the crypto community both because of the new way it keeps the 1: 1 dollar peg, and because its founders have already put in place plans to build a 10 billion bitcoin deposit to restore stablecoin, this means flexibility. in UST it can be depleted in the bitcoin market.
Ether, the world’s second-largest cryptocurrency, which supports the Ethereum network, fell to $ 2,360 on Monday, the lowest since the end of February.