Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Trades Down Nearly 8%, Approaching 52-Week Lows

Published 09/05/2022, 18:46
Updated 09/05/2022, 18:46
© Reuters.

© Reuters.

By Daniel Shvartsman

Investing.com -- Bitcoin traded down 7.6% on Monday afternoon (as of 1:20 pm ET), following up on a volatile weekend of trading. The leading cryptocurrency has reached price levels not seen since July 2021, and is now trading down 28% for the year.

While there is no specific trigger for Bitcoin's sell-off, the broader risk-off sentiment driving stock markets and especially the Nasdaq lower, as well as the increasing treasury yields have placed pressure on assets with little or no cash flow like bitcoin.

The sell-off has spread to the broader cryptocurrency sector, with Ethereum down 8.4% to $2315, also levels last seen in July 2021. Solana is trading down 9.3%, while Cardano is down 13.6%.

Equities that trade in line with bitcoin or crypto assets are also plunging on the day. MicroStrategy (NASDAQ:MSTR), run by vocal bitcoin bull Michael Saylor, is down 22.1%, while Coinbase (NASDAQ:COIN) is down 17.5% and Applied Blockchain Inc (NASDAQ:APLD) is down 18.4%. And it's no surprise that crypto-related ETFs and funds are also struggling, with ProShares Bitcoin Strategy ETF (NYSE:BITO) down 11.8%, Grayscale Bitcoin Trust (OTC:GBTC) down 16.2%, VanEck Bitcoin Strategy ETF (NYSE:XBTF) down 11.9%, and Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF) down 11.8%.

Another investor associated with bitcoin recently, Cathie Wood of Ark Invest, is also facing a downdraft today, with the ARK Next Generation Internet ETF (NYSE:ARKW) (including a 6.5% weight in GBTC) down 9.2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.