Cryptocurrency

Bitcoin Crashes Below $40,000 as Bear Market Concerns Emerge

Bitcoin Crashes Below $40,000 as Bear Market Concerns Emerge

  • The price of Bitcoin tumbled below $40,000 on Monday, reaching its lowest point since the middle of March
  • According to data from CoinMarketCap, the flagship crypto crashed more than 7% to reach $39,176 on Monday morning, before recovering to $40,475
  • The decline was triggered by the 10-year Treasury yield hitting a three-year high of 2.78%

The price of Bitcoin has been on a steady decline lately and this pushed the value of the flagship cryptocurrency below $40,000 on Monday.

Bitcoin

Data from CoinMarketCap shows that the leading cryptocurrency reached as low as $39,176, its poorest position since the middle of March.

The decline came after the 10-year Treasury yield hit a three-year high of 2.78% Monday. It should be noted that riskier assets like cryptocurrencies tend to fall when yields rise.

Furthermore, The Conference Board recently predicted that inflation-adjusted GDP would increase at an annualized rate of 1.7% during the first quarter. This represents a significant drop from 7% in the first quarter.

Following the same pattern, Nasdaq Composite fell by more than 1% on Monday.

Although Bitcoin and other crypto assets are independent of the stock market, a correlation between the two has been more prominent in the past few months.

Other tokens across the crypto market were lower as a result of Bitcoin’s dip. The second-largest crypto, Ether fell by 9%, but managed to hold above $3,000.

Read also: Read also: Elon Musk Suggests Dogecoin Payment for Twitter Blue Users

ALGO lost more than 9%, while Solana and Cardano declined by 11%.

The recent decline has triggered concerns among investors that the market may be entering bear territory.

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