Bitcoin was trading on Monday (13) below US$ 25,000, the lowest value in 18 months, as investors avoid risky assets in the face of the stock market crash.
The world’s most popular cryptocurrency was down 10% to $24,692 in London morning trading, a level not seen since December 2020.
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Bitcoin falling: understand why the main cryptocurrency is plummeting
Fears of a sharp rise in US interest rates and a recession affect stock markets around the world on Monday, after the publication on Friday of higher-than-expected US inflation data.
“The correlation between stock markets and bitcoin continues to gain strength,” said analyst Naeem Aslam of AvaTrade.
O Digital currency value has dropped 65% since reaching all-time high in November 2021.
In 2021, the fledgling sector increasingly attracted players from traditional finance, whose risk appetite was fueled by the flexible policies of central banks around the world.
But the interest rate hike by the Federal Reserve, in its attempt to fight out-of-control inflation, is weighing on markets.