Cryptocurrencies fell on Monday as investor jitters spread across international markets as a result of demonstrations against Covid restrictions in China, as reported by Bloomberg.
Bloomberg further noted that the biggest token, bitcoin, briefly lost 3.2% and was trading at around $16,170 in Tokyo at 12:40 p.m. Ether, which is ranked second, dropped by about 4%, but other coins like Solana, Avalanche, and Dogecoin took even bigger hits.
China’s actions come at a vulnerable time for the cryptocurrency markets, which are on edge due to the spread of contagion following the collapse of Sam Bankman-FTX Fried’s exchange and sister trading firm Alameda Research.
According to Hayden Hughes, CEO of social trading platform Alpha Impact, markets may be concerned that unrest in China will result in additional supply chain restrictions globally. These bottlenecks can make it more difficult to contain inflation, which results in higher interest rates, Bloomberg further noted.
Bloomberg noted that November has seen a roughly 21% decline in the price of Bitcoin, the worst monthly performance since June. The crypto crash of this year has reduced a gauge of the top 100 digital assets by almost 70%. The demise of FTX, which once had a $32 billion valuation but fell into bankruptcy this month in a matter of days, continues to pose a threat to the entire digital asset market.
(With insights from Bloomberg)