Popular crypto currency, Bitcoin, fell below $41,000, testing its 50-day moving average, as renewed fears of a possible Ukraine invasion by Russia impacted on global markets including risk assets.
The biggest crypto currency on the market dipped as much as 7.4%, while Ether, the second largest token, fell 8.2% and Polkadat led a downturn in smaller-cap tokens, also known as altcoins.
Earlier this month, Bitcoin’s 30-day correlation with the Nasdaq Composite reached 0.73, nearly matching its five-year high of 0.74 in 2020.
The figure indicates the two asset classes are exhibiting similar moves, with investors viewing digital assets as “risk-on” along with the Nasdaq’s signature marquee tech stocks.
The coefficient currently stands at 0.62.
