Bitcoin price falls to lowest point since the beginning of the year

Sina Technology News Beijing time on the afternoon of May 9th, according to reports, the sharp decline in the stock market continued to have an impact on bitcoin, which fell to close to its lowest level since January this week on Monday, and the cryptocurrency is currently trading at a price similar to So-called riskier assets such as tech stocks moved in the same direction.

In early Monday trade, bitcoin was trading as low as $33,266, near its lowest point of $32,951 set in January. If prices continue to slide below $32,951, Bitcoin’s price will fall to its lowest point since July last year. It then traded steady at around $33,500, down 1.4%.

Matt Dibb, chief operating officer of Singapore-based cryptocurrency platform Stack Funds, said: “I think everything within the cryptocurrency category is still classified as a risk asset, similar to what we saw on Nasdaq. , most cryptocurrencies have been hit.”

Suffering from the persistent inflation outlook, forcing the Federal Reserve to raise interest rates amid slowing growth. The tech-heavy Nasdaq fell 1.5% last week and is down 22% so far this year. Starq futures fell a further 0.8% in Asian trade on Monday morning.

Dibb said other factors for the weekend’s decline (Bitcoin closed around $36,000 on Friday) included the notoriously low liquidity of the cryptocurrency market over the weekend, and the support for an algorithmic stablecoin called Terra USD (UST) Short-lived fears that the peg to the dollar may be lost. Stablecoins are digital tokens pegged to other traditional assets, typically U.S. dollars.

UST is closely watched by the crypto community, both for its novel way of maintaining a 1:1 peg to the dollar and for its founders’ plans to build a $10 billion Bitcoin reserve to back the stablecoin, This means that UST volatility has the potential to spill over into the Bitcoin market.

Ether, the world’s second-largest cryptocurrency that underpins the ethereum network, fell to $2,421 on Monday, its lowest since February.

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