Cryptocurrencies experienced a sharp decline on Monday, reigniting a broad sell-off that had appeared to stabilise recently. Bitcoin fell by as much as 4.3 per cent to below $US88,000 in early Asian trading hours. Ether also suffered a significant drop, plummeting 6 per cent to trade below $US2900, based on data compiled by Bloomberg.
The cryptocurrency market remains volatile following a weeks-long sell-off triggered by the liquidation of approximately $US19 billion in leveraged positions in early October. This occurred shortly after Bitcoin reached a record high of $US126,251. The market briefly recovered last week, with Bitcoin climbing back above $US90,000, offering a temporary respite from the downward pressure.
However, the latest wave of selling observed on Monday has traders anticipating further declines. The renewed downturn suggests lingering concerns about market stability and investor sentiment within the cryptocurrency space. Market participants are closely monitoring price movements and trading volumes to gauge the potential for more substantial losses in the near term.
This instability follows a period of relative calm after significant liquidations shook the market. The fluctuations highlight the inherent risks associated with cryptocurrency investments, particularly those involving leveraged positions. Investors are advised to exercise caution and conduct thorough research before engaging in cryptocurrency trading.
