First Mover Asia: Slow Start to the Week for Crypto as China Lockdowns Drag on Stocks, S&P 500

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Good morning. Here’s what’s happening:

Prices: In a slow but surprisingly volatile session, bitcoin fell to a six-week low around $38,200 before quickly recovering back above $40,000.

Insights: Crypto had a slow start to the week in Asia amid ongoing fears about COVID-19 lockdowns in China.

Technician's take: BTC's price range could persist for another week.

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Bitcoin (BTC), after a big price swing over the past week, traded earlier Monday at its lowest point since mid-March but quickly recovered.

As of press time the largest cryptocurrency by market capitalization was up 2.4% in the past 24 hours, trading at $40,485. Earlier, the bitcoin price fell as low as $38,202, the lowest in almost six weeks.

“Recent volatility has been driven by factors such as inflation, the Ukraine crisis as well as contractionary monetary policies,” said Daniel Khoo, research analyst at Nansen. “This has affected not only the stock market but also the crypto market, which seems to follow in tandem recently.”

Khoo said the fall in prices could be driven by the short-term negative sentiment as people go risk-off on volatile assets. “Many investors are also shifting towards [stablecoins] given the uncertainty and short-term bearish outlook, as the market has become too hot and periods of extreme euphoria were followed by market corrections historically,”Khoo s













 

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