Bitcoin has dipped to a month-low of $38,577, violating a critical support level of $40k as the US investors prepare for the tax season.
The most valuable cryptocurrency has lost more than 17% since trading above $48,000 in the past three weeks, with the $40k level seeing notable buying activities recently.
The price movement coincides with the US 10-year Treasury yield 2.88% jump, with the inflation rate remaining high ahead of an anticipated interest rate hike.
The rolling 90-day correlation between bitcoin and Nasdaq Composite is up more than 0.6, with the selling pressure coming from short-term sellers. Babel Finance’s head George Liu notes that the correlation is the main factor behind the dip.
Coinbase’s representative, David Duong, observes that the more crypto traders disposed of digital assets during the tax filing season in 2021. The US investors have until April 18 to file and pay their taxes.