While bitcoin is frequently referred to as a safe-haven asset, the reality is that its price tends to fall in tandem with larger market drops in risk assets. Bitcoin's rise this year has coincided with a broader risk-on rally, and the digital currency, like stocks, is prone to severe drops in September. On Monday morning, Bitcoin fell by as much as 10%. According to Coin Metrics, it was last down 7% at $43,953.87. The larger crypto market is down as well, with ether falling 8% to $3,064.29.
Cryptocurrencies appear to be caught in a wave of global selling pressure that encompasses equities in the United States, Europe, and Asia. Hong Kong's stock market ended Monday with a 3.3 percent loss. China and Japan's stock exchanges were closed for the holidays. Coinbase Global (ticker: COIN) is down approximately 3.5 percent to $235 in early trading, indicating that U.S. crypto equities aren't immune. The Bitwise Crypto Industry Innovators exchange-traded fund (BITQ) is currently trading at $22.75, down 6%.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
