The sharp decline in the stock market continued to have an impact on bitcoin. On Monday, the price of bitcoin fell to the lowest level since January this year. At present, the trading price of cryptocurrency is consistent with the trend of so-called high-risk assets such as technology stocks. In early Monday trading, bitcoin traded as low as $33266, close to the lowest point of $32951 set in January this year.
If prices continue to fall below $32951, the price of bitcoin will fall to its lowest level since July last year. Subsequently, the trading price stabilized at about US $33500, down 1.4%.
Matt Dibb, chief operating officer of stack funds, a cryptocurrency platform in Singapore, said: "I think everything in the cryptocurrency category is still classified as risky assets. Similar to what we saw on Nasdaq, most cryptocurrencies have been hit."
The continued inflation outlook has forced the Federal Reserve to raise interest rates in the face of slowing growth. Nasdaq, which has many technology stocks, fell 1.5% last week and has fallen 22% so far this year. NASDAQ futures fell a further 0.8% in Asian trading on Monday morning.
Dibb said that other factors that fell over the weekend (bitcoin closed at about $36000 on Friday) included the notoriously low liquidity of the cryptocurrency market over the weekend and the short-term concern that the algorithmic stable currency called Terra USD (UST) may lose its peg to the dollar. Stable currency is a digital token linked to other traditional assets, which are usually US dollars.
Ust is closely watched by the cryptocurrency community, on the one hand, because it maintains the novel way of 1:1 dollar peg, on the other hand, because its founder established a bitcoin reserve worth $10 billion to support the plan to stabilize the currency, which means that the fluctuation of ust may spread to the bitcoin market.
Ethereum, the world's second-largest cryptocurrency and supporting the Ethereum network, fell to $2421 on Monday, the lowest level since February.