The world’s largest digital token fell 5.1% on Monday, trading at around $ 32,630 at 10:47 am in New York (14:47 GMT).
Bitcoin plunged to the level last seen in July 2021. This is part of the broader setback of cryptocurrencies caused by the global escape from higher risk investments.
The world’s largest digital token fell 5.1% on Monday and traded in New York at 10:47 am for about $ 32,630. Ether fell 7%, while Solana fell 7.3% and Avalanche fell 9.4%.
Michael Novogratz, a billionaire crypto investor who heads Galaxy Digital Holdings Ltd., warned that he expects things to get worse before things get better.
“Cryptocurrencies probably correlate with Nasdaq until we reach a new equilibrium,” Novogratz said in a first-quarter earnings call for the Galaxy on Monday. “My instinct is that there is a little more to do. It’s a very volatile, volatile and difficult market for at least the next few quarters before people feel that we are in equilibrium to some extent. Will be traded at. “
Monetary tightening policies to combat runaway inflation and declining liquidity keep investors away from speculative assets across the global market. In addition to note about digital assets, the value of TerraUSD or UST is a stablecoin algorithm aimed at maintaining a one-to-one peg against the dollar, falling below $ 1 on weekends before recovery. I did.
Darshan Bathija, Chief Executive Officer of Singapore-based cryptocurrency exchange Vauld, said:
According to data compiled by Bloomberg, Monday’s sellouts spread across the world of cryptocurrencies, with Cardano down 8.4% and Polkadot down 6.7%.
Rising interest rates have stopped private and institutional investors from thinking about the outlook for the crypto market, according to Edul Patel, chief executive officer of Mudrex, an algorithm-based crypto investment platform. A 29% decline in Bitcoin in 2022 is compared to a more than 10% recession in global bonds and equities, and a 2.5% advance in gold.
“The downtrend is likely to continue for the next few days,” he said, allowing the addition of Bitcoin to test the $ 30,000 level.
The recent fall in Bitcoin risks steadily dropping out of the range traded in 2022, completely reversing the latest Bull Run, which pushed tokens to a record of nearly $ 69,000 in November. According to data compiled by Bloomberg, the 40-day correlation with the S & P 500 stock benchmark is a record 0.82, and further hits on stock sentiment risk Bitcoin’s decline as well.
A correlation of 1 means that the two assets move in a complete lock step. A reading of -1 means that they move in the opposite direction.
– With the support of Yueqi Yang.