Bitcoin and ether plunged to multi-month lows amid worries over a possible US recession following soft economic data triggered a rush to safe-haven assets. Crypto markets got a boost this year after the US Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether.
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Before this, Bitcoin has fallen alongside other assets including global equities in a broad selloff as investors fear a US recession could be on the horizon. Geopolitical worries from the Israel-Hamas war are also weighing in on the investors' sentiment. Bitcoin has lost over a third of its value since hitting a record high in March.
Tony Sycamore, market analyst at IG said as per news agency Reuters, “It's a big reminder that bitcoin and crypto in general are risk assets and sit at the pointy end of the risk spectrum.”
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Bitcoin fell 13% from its close on Sunday to $51,560, heading for its largest one-day fall since November 2022 and its lowest since February. Ether slid 17% to its lowest since mid-January at $2,277.
{{/usCountry}}Bitcoin fell 13% from its close on Sunday to $51,560, heading for its largest one-day fall since November 2022 and its lowest since February. Ether slid 17% to its lowest since mid-January at $2,277.
{{/usCountry}}Bitcoin was testing trend channel support at the $54,000/$53,000 area and needed to hold there to “prevent further capitulation towards $48,000”, Tony Sycamore said.
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Shares in crypto-related US stocks listed in Frankfurt also fell heavily with Coinbase down over 18%, while those in miners Riot Platforms and Marathon Digital were down 17.7% and 20%, respectively.