Bitcoin drops to $32,000, days after topping $40,000, as crypto is hit alongside Nasdaq stocks

Bitcoin fell below the key psychological level of $33,000 on Monday, just days after touching $40,000 in a Fed-induced rally last Wednesday.

The price of bitcoin was last down about 5% at $32,843.01, according to Coin Metrics. Earlier in the day it fell as low as $32,650.25, its weakest since last July. Bitcoin has been steadily extending its declines since Thursday, when it fell sharply alongside the stock market sell-off, and took another steep fall over the weekend.

Ether’s moves over the past five days – crypto trading is 24 hours, including weekends – have followed bitcoin’s. It’s down about 5% to $2,402.70 Monday.

“Bitcoin has followed the lead of the equity market, extending lower after a weak April,” said Katie Stockton, founder of Fairlead Strategies. “Short-term momentum has deteriorated … and bitcoin is no longer oversold from a short-term perspective.”

Stockton also said bitcoin currently has no counter-trend signals but that the equity market looks poised to rebound this week, which could carry over to cryptocurrencies. The crypto market, led by bitcoin, has remained highly correlated with the moves in equities, particularly tech stocks, for about a year. April was the worst month since 2008 for the technology-dominated Nasdaq Composite Index.

Stock futures were down across the board on Monday morning.

https://www.cnbc.com/2022/05/09/bitcoin-nears-32000-as-crypto-is-hit-alongside-nasdaq-stocks.html