Bitcoin Heads To Low In 2021 As Cryptos Fall Continues With Stock Market Rout

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Bitcoin was under pressure on Monday, with the world’s No.1 cryptocurrency exchange near its lowest level since January 1, according to data compiled by Dow Jones Market Data.

Bitcoin’s BTCUSD drop, + 0.21% 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 United States, which come at a vulnerable time for asset valuations that have generally risen.

On Monday, bitcoin changed hands at $ 30,820, down 2.7% on CoinDesk and down more than 50% from its peak in mid-April. Ether ETHUSD, + 0.16% on the Ethereum blockchain was down around 4%, changing hands at $ 1,822.60. Ether values ​​are down almost 60% from highs reached in early May. Ether is trading around its lowest levels since June 27th.

In other digital assets, DOGEUSD dogecoin prices, + 0.36%, fell 5% to 17.5 cents, down more than 75% from its peak in early May.

Find out: Why did the Dow Jones tumble on Monday? Economic growth is now more of a concern than inflation.

The crypto crash has been in effect for weeks and blamed on a regulatory crackdown in China. The People’s Republic has banned bitcoin trading, and the government has also banned popular apps from trading in crypto.

Monday’s trade for crypto comes as the Dow Jones Industrial Average DJIA, -2.09% suffered its worst day since October 28, falling 726 points or 2.1%. The S&P 500 SPX, -1.59% and the Nasdaq Composite Index COMP, -1.06% also saw sharp declines. The stock selloff also coincided with a decline in benchmark 10-year Treasury yields TMUBMUSD10Y from 1.193% to below 1.18%, reflecting a flight to the perceived safety of safe-haven debt.

Crypto and stocks aren’t correlated, but sometimes strategists view assets as measures of risk appetite on Wall Street.

Bitcoin, meanwhile, has knocked on the door to trading below $ 30,000, which is seen by some as a level of support which, if the crypto falls below, could fuel further sales.

However, Fairlead Strategies’ Katie Stockton remains bullish on bitcoin in the short and long term and sees the possibility of a digital asset breakout above $ 35,000 paving the way for a potential rally to $ 45,000.

The crypto complex is down $ 1.3 trillion from a peak in May to around $ 2.5 trillion, according to CoinMarketCap.com.

CoinMarketCap.com

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