Bitcoin briefly dropped below its 50-day moving average, sliding back further into the range in which it has traded this year. The digital token fell over 2% to $41,917. The world's largest and most popular cryptocurrency is down more than 9% in 2022 (year-to-date or YTD) so far.
Bitcoin has been in a trading range of around $35,000 to $45,000 for much of the year so far. The breakout above $48,000 last month took the cryptocurrency's price to year-to-date highs, but the token hit resistance around its 200-day moving average.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency in terms of market capitalization, also tanked more than 5% to $3,179. Meanwhile, dogecoin price plummeted by over 3% to $0.14 whereas Shiba Inu was trading also over 3% lower at $0.000024.
The performance of other digital tokens also declined with Litecoin, Stellar, Cardano, Solana, Polkadot, Polygon, Uniswap prices were trading with cuts over the last 24 hours, and Terra slipped over 9%. The global cryptocurrency market capitalisation was above the $2 trillion mark even as it plunged to $2.04 trillion, down more than 2% change in the last 24 hours, as per CoinGecko.
Bitcoin’s tendency to move in sync with assets such as US stocks makes the drop less of a surprise after a tough week for American markets last week. Its correlation with the Nasdaq 100 Index is now back at record levels, as reported by Bloomberg.
(With inputs from agencies)
