Bitcoin tumbled more than 5% on Monday, briefly falling below $90,000 as a wave of risk aversion swept through global markets. The world’s largest cryptocurrency shed value alongside other speculative assets, signaling a pullback after a period of sustained gains.The decline comes amid increased investor caution fueled by geopolitical uncertainty and concerns about potential interest rate hikes.Bitcoin, frequently enough touted as a hedge against inflation, has recently traded in tandem with riskier assets like technology stocks, suggesting its role as a safe haven is being questioned. The dip impacts a broad range of investors,from institutional funds to retail traders,and raises questions about the sustainability of its recent rally. Analysts are now watching to see if this marks a short-term correction or the beginning of a more meaningful downturn.
As of 2:30 PM EST, Bitcoin was trading around $90,300, according to data from CoinGecko. The cryptocurrency had reached a record high near $72,000 in March, driven by increased adoption and the launch of spot Bitcoin exchange-traded funds (etfs) in the United States.the recent sell-off mirrors broader market trends, with global stocks also experiencing losses. investors are reassessing their portfolios considering rising bond yields and the possibility that central banks may delay cutting interest rates.The volatility underscores the inherent risks associated with investing in cryptocurrencies, which remain subject to significant price swings.
