Bitcoin and Ethereum offset yesterday’s gains, tumbling back below key support levels as the tech-heavy Nasdaq slipped to its lowest level in a mont
Bitcoin and Ethereum offset yesterday’s gains, tumbling back below key support levels as the tech-heavy Nasdaq slipped to its lowest level in a month.
The largest coin by market cap, Bitcoin, fell 4.29% to US$38,740, while Ethereum lost 4% to US$2,874.
Both coins are trading below their significant support levels of US$40,000 for Bitcoin and US$3,000 for Ethereum.
Cryptocurrencies over the last year or so have increasingly mirrored the movements of the equity markets as investors and traders moved into the world of digital tokens.
In particular, the markets follow the movements of the tech-heavy Nasdaq index in the US and the Hang-Seng index in Hong Kong.
The Nasdaq lost 3.95%, or 514 points, to 12,490, its lowest level in over a month.
Performance in Hong Kong was better, however, with the index up 0.4%, or 79 points, to 19,997.
According to Michael Hewson, an analyst at CMC Markets, the “inability to hold onto the attempted rally is not only worrying but also speaks to a general lack of confidence more broadly about the economic outlook”.
He added that there is also concern about the “ability of central banks to engineer a ‘soft landing’ as they look to tackle inflation”.
In some of the altcoins, Solana was down 2.29% to US$98.57, Terra was down 7.06% to US$89.65 and Polkadot was down 4.11% to US$17.15.
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