Most cryptocurrencies continued to fall, mirroring the tech-heavy indices which are “more sensitive to changes in interest rates”. Bitcoin, the lar
Most cryptocurrencies continued to fall, mirroring the tech-heavy indices which are “more sensitive to changes in interest rates”.
Bitcoin, the largest coin by market cap, fell 3.65% to US$32,301, briefly dipping below US$30,000, for the first time in almost a year.
Ethereum on the other hand fell 1.08% to US$2,442. Like Bitcoin, Ethereum had slipped further to US$2,228, also its lowest level in nearly 12 months, before bouncing slightly.
Cryptocurrencies have also mirrored the movements of tech stocks, like the Nasdaq.
According to Ipek Ozkardeskaya, an analyst at Swissquote, tech indices tend to be “more sensitive to changes in interest rates”, with the Nasdaq down 30% in the year so far.
She added that the rising US 10-year yield, which hit 3.20%, saw investors dump ‘safe haven’ assets.
Ozkardeskaya suspects that for Bitcoin, despite the rebound, “the risks remain tilted to the downside for a deeper selloff below the US$30,000 support”.
Naeem Aslam, a market analyst at Avatrade, added the digital tokens’ current price “does represent a huge bargain opportunity”.
He believes “it will not be long before we start hearing funds and corporates bagging Bitcoin at its current price levels”.
“El Salvador bought more Bitcoin, and this continues to send one message and one message alone, and that is sheer determination to back Bitcoin no matter what.”
Aslam also believes that, if the largest coin by market cap does fall below US$30,000, there may be some capitulation and another intense sell-off.
In some of the altcoins, Solana fell 2.51% to US$72.22, XRP fell 4.69% to US$0.5337 and Cardano gained 0.36% to US$0.6885.
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