LONDON (Reuters) – Cryptocurrency ether fell as much as 7% on Thursday as it fell amid a broad market sell-off and failed to benefit from a rally following the launch this week of the first U.S. ETF tracking the currency.
The world’s second-largest cryptocurrency recently fell 6% to $3,170, which would be its biggest daily percentage drop in three months, putting it roughly in the middle of its recent price range.
was 3% lower and amounted to $63,930.
The first U.S. ETFs linked to the price of ether began trading on Tuesday, but failed to generate as much of a price rally as bitcoin-based ETFs created earlier this year.
Instead, broader macroeconomic trends have taken hold. Stocks around the world have fallen in recent weeks, particularly tech stocks and other “risk assets” that often move in line with cryptocurrencies.
The Nasdaq composite index fell nearly 4% on Wednesday — its worst one-day decline of 2022 — as delicate earnings for Alphabet (NASDAQ:) and Tesla (NASDAQ:) undermined investor confidence in the already high valuations of the “Magnificent Seven” stocks. [.N]
Shares of cryptocurrency-related companies such as mining companies fell in the pre-market session on Thursday, with Coinbase (NASDAQ:) losing 2.3%, Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:) losing 3.4-4%.
European shares fell 1.4% in early trading on Thursday.
