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The cryptocurrency market fell in value on Sunday as investors continued to sell risky assets.
Led by an 11% drop in bitcoin over the past 24 hours and a 21% drop in ether, the overall value of cryptocurrencies has fallen by around $270 billion, according to data from CoinGecko.
The cryptocurrency market’s slide coincided with a broader decline in stocks across Asia-Pacific. Japan’s Nikkei 225 fell as much as 7%, extending losses that began last week after the Bank of Japan said it would raise its benchmark interest rate to its highest level in 16 years.
In the United States, the Nasdaq fell 3.4% last week into correction territory, ending the tech-heavy index’s worst three-week streak since September 2022, when the market was in freefall. Amazon And Nvidia contributed to the decline.
The stock market slide last week was partly due to disappointing financial results, a weaker-than-expected jobs report, rising unemployment and a declining manufacturing sector. The U.S. Federal Reserve chose to keep its benchmark interest rate unchanged and did not promise a rate cut in September, something many market pundits had factored into their forecasts. Lower interest rates tend to correlate with better performance for risky assets.
BitcoinBitcoin’s price has hit its lowest level since February. The world’s largest cryptocurrency is trading at around $54,000. It is still up nearly 23% this year.
The price of etherthe native token that underpins the Ethereum blockchain, fell to around $2,300 and erased its gains for the year. Binance’s BNB token fell more than 15% and Solana is trading 10% lower.
Investors are also awaiting new trade data from China and Taiwan this week, as well as central bank decisions in India and Australia.
The latest wave of cryptocurrencies will be felt by a broader base of investors after the SEC approved new cash exchange-traded funds for bitcoin and ether this year. The ETFs have seen hundreds of millions of dollars flow into the cryptocurrencies. On Friday, CNBC reported that Morgan Stanley would soon allow its 15,000 financial advisors to offer bitcoin ETFs to clients, a first for Wall Street.
WATCH: Bitcoin Fluctuates Amid Market Selloff
