Bitcoin tumbles below US$33,000 to lowest level since July 2021
BNN Bloomberg
Bitcoin slumped to a level last seen in July 2021, part of a wider retreat in cryptocurrencies triggered by a global flight from riskier investments.
The world’s largest digital token fell as much as 4.6 per cent on Monday and traded at around US$32,800 at 7:07 a.m. in New York. Most major virtual coins were under pressure over the weekend and the downbeat mood carried over into Monday. Equities in Asia and Europe also dropped, with the Nikkei gauge down 2.5 per cent and the Stoxx Europe 600 Index falling 2 per cent. U.S. equity futures were also in the red.
Tightening monetary policy to combat runaway inflation and ebbing liquidity are turning investors away from speculative assets across global markets. Adding to the caution around digital assets, the value of TerraUSD or UST, an algorithmic stablecoin that aims to maintain a one-to-one peg to the dollar, slid below US$1 over the weekend before recovering.
“In light of fears of rising inflation, most investors have taken a risk-off approach -- selling stocks and cryptos alike in order to cut down risk,” said Darshan Bathija, chief executive of Singapore-based crypto exchange Vauld.
