Bitcoin falls to the 10-month lowest level as stock markets fall

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 traded in line with so-called more risky assets such as technology stocks.

Bitcoin fell to as low as $ 32,763.1[ads1]6 just before 1100 GMT, in its fifth consecutive session of decline.

The cryptocurrency has fallen 13% so far in May and has lost more than half its value since reaching a record high of $ 69,000 in November last year.

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“I think everything in crypto is still classified as a risk asset, and like what we’ve seen with Nasdaq, most cryptocurrencies are confused,” said Matt Dibb, COO of the Singapore-based crypto platform Stack Funds.

The technology-heavy Nasdaq (.IXIC) fell 1.5% last week, losing 22% so far this year, damaged by the prospect of sustained inflation forcing the US Federal Reserve to raise interest rates despite declining growth. Nasdaq futures fell another 2.3 percent on Monday. MKTS-GLOB read more

A bitcoin representation is seen in an illustration photo taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS / Benoit Tessier

Dibb said other factors in the downturn over the weekend – bitcoin closed around $ 36,000 on Friday – were the cryptocurrency market’s notoriously low liquidity on the weekends, and also short-lived fears that an algorithmic stack coin called Terra USD (UST) could lose link to the dollar. .

Stablecoins are digital tokens linked to other traditional assets, often US dollars.

UST is closely monitored by the crypto community both because of the new way it maintains its 1: 1 dollar affiliation and because the founders have set up plans to build a $ 10 billion reserve in bitcoin to support stablecoin, which means volatility in UST could potentially spread to bitcoin markets. read more

Ether, the world’s second largest cryptocurrency, which underpins the ethereum network, fell as low as $ 2360 on Monday, the lowest since the end of February.


(This story corrects the milestone in the headline to 10 months from 22)

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Editing Kim Coghill

Our standards: Thomson Reuters Trust Principles.

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