ASX in positive territory; AusNet climbs 8% on APA offer
Cryptocurrency prices collapsed on Tuesday after a wide sell-off sparked by concerns over contagion from the China Evergrande group that swept through global markets.
Bitcoin slipped 7.6% to US $ 40,237 in early Asian exchanges, falling to its lowest level since early August, before softening some of the decline. Ether fell below US $ 3,000. Cardano has fallen about 10% in the past 24 hours, according to CoinGecko.com.
The losses reflected concerns in the broader market as investors weighed the risks of the Evergrande debt crisis and this week’s Federal Reserve meeting. The S&P 500 fell 1.7% in its worst overnight session since May, and stocks continued to sell off in Asia on Tuesday.
“Some attributed the sudden drop to the current situation of Evergrande in China, which has already caused turmoil in traditional markets,” wrote Jonas Luethy, a trader at GlobalBlock, the UK-based digital asset brokerage.
“Analysts have suggested that a turbulent week is ahead, with a potential pullback to US $ 41,000.”
While Bitcoin does not always trade in tandem with financial markets – a feature that made it a tempting proposition from a portfolio diversification perspective – its correlation on a 30-day basis with futures on the Nasdaq 100 has always been positive since February. Last year. As Bitcoin becomes more integrated into global financial markets, it may respond more to the changes in risk appetites that are fueling global sentiment.
Meanwhile, President of El Salvador Nayib Bukele said the country had “bought the bitcoin down”, adding 150 tokens to bring its total holdings to 700, or roughly $ 32 million on a price basis. current. The nation recently adopted Bitcoin as legal tender in a controversial move that has encountered technical issues and protests.
“This is part of a well-established model where it sells out as traders cash in their riskier assets to cover margin calls and / or sit on the sidelines until markets calm down and they feel more comfortable returning to riskier positions, ”Leah said. Wald, Managing Director of Valkyrie Investments.