Investor

Bitcoin price slips today as wave of investor angst undermines global markets

The gloom shrouding global markets pushed cryptocurrencies, including the price of Bitcoin, lower today.

The gloom shrouding global markets pushed cryptocurrencies, including the price of Bitcoin, lower today.

The largest token fell 3.1% to an almost week-long low and was trading around $18,700 as of 12:45 p.m. Tokyo. Ether and most other major coins also saw losses.

Stocks, bonds and commodities are slumping under a noxious mix of sharp interest rate hikes, high inflation and a bleak economic outlook. A dollar gauge is at an all-time high amid demand for a refuge from the maelstrom.

If there is any consolation for crypto investors, it is that other assets are moving above major markers while Bitcoin is still around 6% above June lows.

For example, Asian stocks are at levels last seen at the start of the pandemic, the 10-year US Treasury yield hit 4% for the first time since 2010 and the pound is hovering around a low. record against the greenback.

Conversely, if the crypto removes the June floor, it could sour sentiment not just for digital tokens, but riskier investments more generally.

“Do you want to talk about Bitcoin, do you want to talk about Netflix stock or do you want to talk about the British pound? Jack Mallers, founder of money transfer startup Bitcoin Strike, said on Bloomberg Television. The macro environment “is a bit of a mess,” but he claimed Bitcoin has time on its side given its fixed supply.

The MVIS CryptoCompare Digital Assets 100 Index has plunged 60% this year in a crypto rout that has knocked down brokers, lenders and a major sector-focused hedge fund. Bitcoin has lost some $50,000 since peaking in November 2021.

Still, the fact that the cryptocurrency is holding above its June low, despite the intense pressure in global markets, is leading to some speculation that its currently close correlation to stocks could be changing.

“Ecosystem followers have been thrilled to see correlations with risky assets starting to break down, meaning the speculative ‘fast-money’ crowd may lose influence in the space,” said Stéphane Ouellette. , Managing Director of FRNT Financial Inc.