# Bitcoin falls to 22-month low as stock markets tumble
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-09
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Bitcoin Falls to Lowest Level Since July 2021 Amid Slumping
Meta Description: Bitcoin dropped to $32,763.16, down 13% in May. Matt Dibb says all crypto still risk assets. Nasdaq down 22% in 2021, futures lower.
URL: https://financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumblehtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-09t144642z4lynxnpei4804ertroptp4fintech-crypto-weekly-1736815761768-compressed.jpg)

By Alun John and Elizabeth Howcroft

HONG KONG / LONDON (Reuters) -Bitcoin fell to its lowest level since July 2021 on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks.

Bitcoin dropped to as low as $32,763.16 shortly before 1100 GMT, in its fifth consecutive session of falling.

The cryptocurrency has dropped 13% so far in May and has lost more than half its value since it [hit an all-time high of $69,000 in November last year](https://www.financedigest.com/uk-car-sales-hit-30-year-low-in-2022-but-could-grow-15-this-year-smmt.html "UK car sales hit 30-year low in 2022, but could grow 15% this year – SMMT").

I think everything within [crypto is still classed as a risk asset, and similar to what we’ve seen with the Nasdaq, most crypto currencies are getting pummelled,” said Matt Dibb, COO of Singapore-based crypto platform](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") Stack Funds

The tech heavy [Nasdaq fell 1.5% last week](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010"), and has lost 22% year to date, hurt by the prospect of persistent inflation forcing the U.S. Federal Reserve to [hike rates](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") despite slowing growth. Nasdaq futures were down a further 2.3% on Monday. \[MKTS-GLOB\]

Dibb said other factors in the decline over the weekend – bitcoin closed on Friday [around $36,000 – were the crypto market’s](https://www.financedigest.com/britains-market-rout-stokes-contagion-fears-around-the-globe.html "Britain’s market rout stokes contagion fears around the globe") notoriously low liquidity over the weekends, and also short lived fears that algorithmic stablecoin called Terra USD (UST) could lose its peg to the dollar.

Stablecoins are [digital tokens pegged to other traditional](https://www.financedigest.com/how-can-traditional-banks-deliver-game-changing-innovation-in-the-digital-age.html "How can traditional banks deliver game-changing innovation in the digital age?") assets, often the U.S. dollar.

UST is closely watched by the crypto community both because of the novel way in which it maintains its 1:1 dollar peg, and because its founders have set out plans to build a reserve of $10 billion worth of bitcoin to back the stablecoin, meaning [volatility in UST could potentially spill over into bitcoin markets](https://www.financedigest.com/italys-a2a-trims-green-investment-plan-citing-economy-volatile-markets.html "Italy’s A2A trims green investment plan citing economy, volatile markets").

Ether, the world’s second largest cryptocurrency, which underpins the ethereum network, fell as low as $2,360 on Monday, its lowest [since late February](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February").

(Editing by Kim Coghill)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---