(Reuters) – Bitcoin and ether fell to multi-month lows on Monday, as fears of a possible U.S. recession following faint data gripped financial markets and fueled a surge in demand for safe-haven assets.
Cryptocurrency markets have seen a boost this year after the U.S. Securities and Exchange Commission approved an ETF to track the spot prices of bitcoin and ether.
Recently, however, bitcoin has fallen alongside other assets, including global stocks, in a broad sell-off as investors worry a U.S. recession could be on the horizon and rising geopolitical concerns also play a role. It has lost more than a third of its value since hitting a record high in March.
“This is a clear signal that bitcoin and cryptocurrencies in general are risk assets and are at the very end of the risk spectrum,” said Tony Sycamore, market analyst at IG.
fell 13% from Sunday’s close to $51,560, heading for its biggest one-day decline since November 2022 and its lowest since February. Ether fell 17% to its lowest since mid-January, $2,277.
Sycamore stated that Bitcoin is testing trend channel support at $54,000/$53,000 and needs to hold that level to “prevent further capitulation towards $48,000.”
Shares of U.S. cryptocurrency companies listed on the Frankfurt Stock Exchange fell significantly in morning trading on Monday, with Coinbase (NASDAQ:) losing more than 18%, while shares of mining companies Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:) fell 17.7% and 20%, respectively.
