HONG KONG / LONDON, May 9 (Reuters) – Bitcoin fell to its lowest level since July 2021 on Monday as falling stock markets continued to hurt cryptocurrencies, which are currently trading in so-called risky assets such as technology stocks.
Bitcoin fell to $ 32,763.16 just before 11:00 GMT, in its fifth consecutive session of fall.
The cryptocurrency has fallen 13 percent so far in May and has lost more than half its value since reaching a record high of $ 69,000 last November.
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“I think everything in the cryptocurrency is still classified as a risky asset, and like what we saw at the Nasdaq, most cryptocurrencies have been hit,” said Matt Deeb, chief operating officer of the Singapore-based crypto platform Stack Funds.
The tech Nasdaq (.IXIC) fell 1.5 percent last week to 22 percent for the year so far, hurt by the prospect of persistent inflation forcing the US Federal Reserve to raise interest rates despite a slowdown in growth. Nasdaq futures fell another 2.3 percent on Monday. MKTS-GLOB read more
Presentation of bitcoin can be seen in an illustrative photo taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS / Benoit Tessier
Dibb said other factors behind the weekend’s decline – bitcoin ended around $ 36,000 on Friday – were the notoriously low liquidity in the crypto market over the weekend, as well as short-lived fears that an algorithmic stablecoin called Terra USD (UST) could lose its attachment. to the dollar. .
Stablecoins are digital tokens tied to other traditional assets, often the US dollar.
UST has been closely monitored by the crypto community both because of the new way it maintains its $ 1: 1 fixation and because its founders have unveiled plans to build a $ 10 billion reserve of bitcoins to support stable coins, meaning instability in the UST could potentially spill over into bitcoin markets. Read more
Ether, the world’s second-largest cryptocurrency underlying the Ethereum network, fell to $ 2,360 on Monday, its lowest level since late February.
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(This story adjusts the title stage to 10 months out of 22)
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Edited by Kim Coghill
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