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%.
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