Bitcoin was under pressure on Monday, with the world’s No. 1 crypto trading at its lowest level since Jan. 1, according to data collected by Dow Jones Market Data.
The decline for bitcoin BTCUSD,
comes as general risk appetite on Wall Street deteriorated amid growing concerns about the spread of the COVID-19 delta variant and concerns about growing tensions between China and the US, which come at a vulnerable time for asset valuations that are generally higher.
On Monday, bitcoin switched hands for $30,820, 2.7% less on CoinDesk and more than 50% lower than its mid-April peak. Ether ETHUSD,
on the Ethereum blockchain was down about 4% and changed hands at $1,822.60. Ether values are nearly 60% lower from early May highs. Ether is trading near its lowest level since June 27.
In other digital assets, dogecoin prices DOGEUSD,
fell 5% to 17.5 cents, more than 75% less than the early May peak.
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The fall in crypto has been in effect for weeks and has been attributed to a regulatory crackdown in China. The People’s Republic has banned bitcoin trading and the government has also banned popular apps from trading crypto.
Monday’s trading for crypto comes as the Dow Jones Industrial Average DJIA,
experienced the worst day since October 28, falling 726 points or 2.1%. The S&P 500 SPX,
and the Nasdaq Composite Index COMP,
also saw a sharp decline. The stock sell-off also coincided with a decline in 10-year Treasury yields TMUBMUSD10Y,
to less than 1.18%, indicating a flight to the perceived safety of port debt.
Crypto and stocks are not correlated, but sometimes strategists view the assets as measures of risk appetite on Wall Street.
Meanwhile, Bitcoin is knocking on the door of trading below $30,000, which is seen by some as a level of support that, if the crypto falls below, could boost further sales.
However, Katie Stockton of Fairlead Strategies remains optimistic about bitcoin in the short and long term and sees the possibility of a breakthrough for the digital asset above $35,000, paving the way for a potential rally to $45,000.
According to CoinMarketCap.com, the crypto complex is down $1.3 trillion from a May peak of about $2.5 trillion.