The cryptocurrency has fallen by around 6% in the past 24 hours, according to Coindesk. Other cryptocurrencies also fell: Ethereum is down around 7%, while dogecoin, the crypto that started out as a meme currency, has also slipped nearly 7%.
Bitcoin was last trading at around $ 29,800 per coin on Tuesday, its lowest level since last month.
The drop comes after Wall Street was hit hard on Monday by the concern over the recent spread of Covid-19 and the threat it poses to the economic recovery. The Dow Jones Industrial Average (UNDUE) fell about 725 points, a decline of 2.1%. the S&P 500 (SPX) ended the day down 1.6% and the Nasdaq (COMP) was 1.1% lower.
Asian markets followed the slippage on Tuesday, with Japan Nikkei 225 (N225) almost 1% drop. that of Hong Kong Hang Seng Index (HSI) fell 0.8%. that of South Korea Kospi (KOSPI) fell 0.4%, while China Shanghai Composite (SHCOMP) was flat.
“Bitcoin is the ultimate risky asset right now and it could see intense selling pressure if Wall Street enters panic sell mode,” wrote Edward Moya, senior market analyst for the Americas in Oanda, in a statement. Monday’s research note.
Bitcoin and other cryptos have had a difficult year, having been plagued by extreme volatility in recent months. In June, bitcoins (XBT) plunged below $ 30,000 for the first time since late January.
The latest drop came as investors worried about the impact of the Delta variant on reopening the global economy. Shares of airlines, cruise lines and energy stocks all plunged in the United States on Monday. Long-term bond rates have also continued to decline, a sign that fixed income investors are now far more concerned about an economic slowdown induced by the Delta variant than about rising inflation fears.
European and US equities, however, were preparing to rebound a bit on Tuesday. Major European indices were up in early morning trading, with the FTSE 100 (UKX) in London in France CAC 40 (CAC40) each earning about 1%.
US equity futures also edged up. Dow futures rose about 0.7% for the last time, while S&P 500 and Nasdaq futures rose about 0.6% and 0.5%, respectively.
– Paul R. La Monica and Robert North contributed to this report.