Bitcoin price falls to lowest point since the beginning of the year

Sina Technology News, Beijing time, May 9th afternoon news, it is reported that the sharp decline in the stock market continues to have an impact on Bitcoin. On Monday, the price of Bitcoin fell to near its lowest level since January this year. The current trading price of cryptocurrencies is consistent with the so-called high-risk assets such as technology stocks.

In early trading on Monday, Bitcoin traded as low as $33,266, close to its lowest point of $32,951 in January. If the price continues to slide below $32,951, the price of Bitcoin will fall to its lowest point since July last year. The price then stabilized around $33,500, down 1.4%.

“I think everything in the crypto category is still categorized as a risk asset, similar to what we saw on the Nasdaq, where most cryptocurrencies got hammered,” said Matt Dibb, chief operating officer of Singapore-based cryptocurrency platform Stack Funds.

The outlook for persistent inflation has forced the Federal Reserve to raise interest rates amid slowing growth. The tech-heavy Nasdaq fell 1.5% last week, bringing its losses so far this year to 22%. Nasdaq futures fell a further 0.8% in Asian trading Monday morning.

Dibb said other factors in the weekend’s decline (bitcoin closed around $36,000 on Friday) included notoriously low liquidity in the cryptocurrency market over the weekend and brief concerns that an algorithmic stablecoin called Terra USD (UST) could lose its peg to the U.S. dollar. Stablecoins are digital tokens pegged to other traditional assets, usually the U.S. dollar.

UST is closely watched by the cryptocurrency community both because of the novel way it maintains a 1:1 peg to the U.S. dollar and because of its founders’ plan to build a $10 billion bitcoin reserve to back the stablecoin, meaning volatility in UST could potentially spill over into the bitcoin market.

Ether, the world's second-largest cryptocurrency that powers the ethereum network, fell to $2,421 on Monday, its lowest since February.