Bitcoin fell to about 10% on Friday to trade at a six-month low of $38,000, replicating heightened stock sell-off in what is linked to expected Federal Reserve tapering.
The bearish momentum in the primary digital asset has taken it 20% lower over the last month from an all-time high of $69,000 recorded in November.
BTC dipped 9% to $38,274 at 9.05 AM ET on Coinbase, after an earlier plunge that took it to $37,704, the lowest level since August last year.
Senior market analyst at Oanda, Craig Erlam, says that a trend of risk aversion is weighing down on cryptocurrencies and could open more weaknesses.
Investors are also speculating that the Central Bank will raise rates four times in the year, causing the bond yield to increase.
The proposal by the Russian Central bank to have crypto and mining activities banned is also seen as part of the reason behind the bearish momentum.
Ethereum fell 12.4% to about $2,788 on Friday after dropping 30% in the past month since hitting $5,000 in November. BNB is down 11%, while ADA and SOL have shed off 13% and 15%, respectively.
Source: Markets Insider