Bitcoin slid through a key support level during the weekend to almost a four-month low, its lowest since January and a decline of more than 25% year to date (YTD). The world’s largest and most popular cryptocurrency has largely followed the negative trend in equity markets as investors across asset classes respond to signals of further interest rate rises.
Bitcoin price today slipped below $34,000 and was trading nearly 2% lower at $33,948. The global crypto market’s value today slipped over 3% in the past 24 hours to $1.65 trillion, according to pricing from CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also plunged more than 3% to $2,499. Meanwhile, dogecoin price today was trading almost a per cent lower at $0.12 whereas Shiba Inu also fell over 5% to $0.000018.
Other digital tokens’ performance also declined as Solana, Polkadot, Cardano, Uniswap, Terra, XRP, Avalanche, Polygon, Stellar prices were trading with cuts in the range of 2-5% over the last 24 hours, whereas Tron surged more than 4%.
Bitcoin has largely traded in a range of $35,000 to $45,000 this year as the crypto market has been impacted by the Russia-Ukraine crisis, rising inflation and fears of Fed rate hikes.
Bitcoin has been largely trading in tandem with tech stocks. The 90-day correlation coefficient of Bitcoin and the tech gauge now stands above 0.67, the highest such reading in Bloomberg data going back to 2010. A coefficient of 1 means the assets are moving in lockstep, while minus-1 would show they’re moving in opposite directions.
(With inputs from agencies)