Bitcoin, the world’s biggest and best-known cryptocurrency,
tumbled to $42,453.97, its lowest level since August 7 before trimming some
losses to trade down 7.4% at $43,745. It hit a near four-month high above $52,000
on September 6.
Smaller rival ether, the coin linked to the ethereum
blockchain network, fell more than 10% below $3,000 for the first time since
early August. It was last down 7.6% at $3,071.
Market capitalisation of the cryptocurrency market dropped
10% on Monday to under $1.94-trillion, from last Saturday’s $2.17-trillion.
The loss in the value of cryptocurrencies comes at a time
when institutional interest in the space has surged and some investment banks
have ramped up their forecasts for cryptocurrencies in the coming months.
“It’s red, red, red across the board today as the
cryptocurrency markets follow the downturn being seen in traditional markets as
China battles a highly contagious property market crisis,” said Tim Frost, CEO
at Yield App, a financial technology company that enables users to invest in
decentralised finance.
“Bitcoin has lost support at the $44,000 mark and looks set
to test its $39,000 floor. If it falls through here we can expect a significant
correction to come,” he said.
Bitcoin shorts in the futures markets have increased to
1,187 contracts, the largest since early August, according to data from the
Commodity Futures Trading Commission released on Friday.
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