Bitcoin Inches Into Positive Territory After Falling Below $33,000 to a New Low

Bitcoin saw a modest bounce into positive territory Monday after the cryptocurrency continued its slide from last week.

On Monday, bitcoin fell to $32,982.11, its lowest point since July, according to Coin Metrics, but the largest cryptocurrency by market cap was up 2.5% in afternoon trading, to $36,108.92.

Ether plunged to as low as $2,176.41, its lowest since July, according to Coin Metrics. It last fell 1% to $2,390.13. Bitcoin and ether are about 40% and 51% off their respective all-time highs.

Cryptocurrencies have been moving in tandem with stocks, which have continued to fall since the beginning of the year and just came off of their worst week since March 2020. Investors have been selling risk assets like technology stocks, as they prepare for tighter monetary policy from the Federal Reserve.

“It’s possible that macroeconomic concerns, such as the Fed’s response to inflation rates, have facilitated more de-risking activity in general,” said Juthica Chou, head of OTC options trading at Kraken. “The recent price drop, coupled with high volatility, could be leading to further selling as participants look to reduce risk.”

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Source: CNBC