Bitcoin falls to lowest since January, in line with falling stock markets

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A bitcoin representation is seen in an illustrative photo taken at the Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier

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HONG KONG, May 9 (Reuters) – Bitcoin fell to its lowest level since January on Monday as falling stock markets continued to hurt cryptocurrencies, which are currently trading online with so-called riskier assets like tech stocks .

Bitcoin fell to $33,266 in morning trading, testing the January low of $32,951. A drop below that level would be the lowest since July of last year.

It then stabilized to trade around $33,500, down 1.4%.

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“I think anything in crypto is still classified as a risk asset, and similar to what we’ve seen with Nasdaq, most cryptocurrencies are under fire,” said Matt Dibb, COO of Singapore-based crypto platform Stack Funds.

Tech heavyweight Nasdaq (.IXIC) fell 1.5% last week and is down 22% year-to-date, hurt by the prospect of lingering inflation forcing the US Federal Reserve to raise rates despite slowing growth. Nasdaq futures fell another 0.8% in Asian trading on Monday morning. MKTS-GLOB

Dibb said other factors behind the weekend’s decline — bitcoin closed around $36,000 on Friday — were the crypto market‘s notoriously low liquidity over the weekends, as well as short-lived fears. that the algorithmic stablecoin called Terra USD (UST) may lose its dollar peg. .

Stablecoins are digital tokens pegged to other traditional assets, often the US dollar.

UST is being closely watched by the crypto community both because of the new way it maintains its 1:1 dollar peg and because its founders laid out plans to build a $10 billion reserve of bitcoins to support the stablecoin, which means volatility in the US could potentially spill over into bitcoin markets. Read more

Ether, the world’s second-largest cryptocurrency, which underpins the Ethereum network, fell to $2,421 on Monday, its lowest level since late February.

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Editing by Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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