Monday's decline left bitcoin at a 10-month low and set its lowest price this year. The last time the largest cryptocurrency by market cap fell below the $30,000 threshold was on July 20, 2021, when it hit $29,301 before rebounding.
However, bitcoin recovered in European hours on Tuesday as global sentiment slightly improved. European index Stoxx 600 rose 1.46%, while Germany's DAX added 1.92%. Meanwhile, futures on Nasdaq 100 Index rose 1.86% a day after valuations plummeted to the lowest in two years. S&P 500 futures were up 1.15%.
BTC down: What experts are saying
Edward Moya, senior market analyst at Oanda, said:
Steven McClurg, Valkyrie chief investment officer and co-founder, told CoinDesk TV on Monday:
Jeff Dorman, chief investment officer at Arca, wrote in a report:
This month the Federal Reserve raised its benchmark interest rate by 50 basis points (0.5 percentage points) and will likely do so again at its next meeting in June.
As part of this market sell-off, the correlation coefficient between bitcoin and the Nasdaq hit an all-time high of 0.8, according to data firm Kaiko. This is considered to be a strong positive correlation.
UPDATE (May 10, 13:01 UTC): Updated with latest price and stock market information.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.