Bitcoin Drops Below $ 32,000 Days After Hitting $ 40,000 As Cryptocurrencies Hit Along With Nasdaq Shares

Bitcoin extended the heavy losses on Monday, dipping below $ 32,000 after hitting a recent high of $ 40,000 last week.

The price of bitcoin It fell 10.3% to $ 31,016.92, according to Coin Metrics. Earlier in the day, it fell as low as $ 31,003.22, its weakest point since last July, when Bitcoin traded as low as $ 29,839.80, the last time bitcoin traded below $. 30,000. That’s about 53% from its all-time high, which it hit in November. ether fell 10% to $ 2,304.93.

Cryptocurrencies have consistently extended their dips since Thursday, when they have it fell sharply amid a broader stock market sell offwhere the Dow Jones Industrial Average and the Nasdaq Composite released theirs The worst one day drops since 2020. Losses increased over the weekend. Crypto trades 24 hours a day, including weekends.

The bitcoin-led cryptocurrency market has remained highly correlated with movements in stocks, especially tech stocks, for about a year. All three major equity indices fell on Monday.

“Bitcoin followed the lead in the stock market, falling to the downside after a weak April,” said Katie Stockton, founder of Fairlead Strategies. “The short-term momentum has worsened … and bitcoin is no longer oversold from a short-term perspective.”

Stockton also said that bitcoin currently has no signs of a countertrend, but that the stock market looks set to rebound this week, which could be carried over to cryptocurrencies.

Key US inflation data for April, expected to be released Wednesday, could be a temporary “tipping point” for bitcoin, according to Yuya Hasegawa, a cryptocurrency market analyst at Japan’s Bitcoin exchange Bitbank.

“If the CPI shows no signs of slowing, it will add to fears of faster monetary tightening,” Hasegawa said. “But other inflation metrics are starting to slow and April CPI may follow suit, which in turn will likely ease market concerns and help recover its risk sentiment.”

However, he said, it would not be enough to completely reverse market sentiment.

Bitcoin must maintain the key psychological level of $ 33,000 to prevent further deterioration in technical sentiment, Hasegawa added. It sees it trading between $ 30,000 and $ 38,000 this week.

Correction: The title of this story has been updated to reflect that the bitcoin price fell below $ 33,000 on Monday morning. An earlier stock incorrectly indicated the lowest price of the day.