Cryptocurrency bitcoin has further lost value now that the financial markets are experiencing ongoing turmoil. The currency fell by almost 8 percent in early Asian trading to a level of nearly $40,000, only to bounce back after that.
Investors are weighing the risks posed by Evergrande’s debt crisis and the Federal Reserve’s meeting of the Federal Reserve’s central bank later this week. There may be more clarity about the phasing out of the corona support measures.
According to CoinMarketCap, the coin was worth more than $42,000 on Tuesday morning. The website monitors various platforms on which cryptocurrencies are traded. Other coins also lost value. For example, ether dropped to under $3,000 due to more than 8 percent loss, and cardano lost about 10 percent of its value in the past 24 hours. According to experts, the losses reflected the concerns in the market.
Cryptocurrencies such as bitcoin do not always move along with the sentiment in the financial markets. This makes cryptos attractive to certain investors if they want to spread the risks of investments. But as the currencies become more and more integrated into global financial markets, the currencies are moving more and more with the overall sentiment that prevails there.