Cryptocurrency prices extended their decline on Tuesday after global markets were swept via from a massive sell-off triggered by concerns about the contagion of the Chinese group Evergrande.
Bitcoin fell 7.6% to $ 40,237 in early Asian exchanges, falling to its lowest level since the beginning of August, before evening some losses. Ether dropped below $ 3,000, while Cardano fell about 10% in the past 24 hours, according to CoinGecko.com.
The losses reflect concerns in the broader market as investors weighed the risks stemming from the Evergrande debt crisis and this week’s Federal Reserve meeting. The S&P 500 fell 1.7% overnight in its worst session since May, and the sell-off in Asia continued on Tuesday.
Although Bitcoin is not always traded in tandem with the financial markets – a feature that made it an attractive proposition from a portfolio diversification perspective – its 30-day correlation with Nasdaq 100 futures has been consistently positive since February last year.
As Bitcoin becomes more integrated into global financial markets, it may more respond to changes in risk appetite driving global sentiment.
Meanwhile, El Salvador President Najib Boukela said the country “bought Bitcoin by adding 150 token to increase its total holdings to 700, worth $ 32 million in based on current prices. “was met with technical malfunctions and protests.
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