Cryptocurrencies continued to fall, with bitcoin dropping below a key support level, as investors dumped riskier assets ahead of the latest US infla
Cryptocurrencies continued to fall, with bitcoin dropping below a key support level, as investors dumped riskier assets ahead of the latest US inflation data.
Bitcoin was down 5.7% to US$39,914, while its closest rival by market value, Ethereum, gave up 5.5% to US$3,008.
“Bitcoin slipped below the $40K mark as the broad risk selloff tainted the mood in cryptocurrencies,” Ipek Ozkardeskaya, Swissquote Bank senior analyst, said.
“It is now clear that Bitcoin trades parallel to the risk assets, rather than a safe haven.
“In fact, the latest data even shows that the 90-day correlation between Bitcoin and Nasdaq advanced to the highest levels on record, near 60%.”
Global markets are braced for more data out of the US today with the latest consumer price index expected to highlight rampant inflation in the world’s biggest economy.
Meanwhile, the negativity echoed around the digital currency world, with 95 of the top 100 trading in the red.
Solana, Cardano and Polkadot were the biggest fallers amongst the top coins, slumping 7.4%, 6.8% and 6.7% respectively.
Most notable to buck the trend was Waves, up 2.6%, the only coin to gain over 1% Tuesday morning.
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