\n Cryptocurrency losses accelerated, with popular Defi tokens such as Cardano and Avalanche falling more than sector bellwether Bitcoin, as risk aversion sweeps through financial markets.\n <\/p>\n

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Cryptocurrency losses accelerated, with popular Defi tokens such as Cardano and Avalanche falling more than sector bellwether Bitcoin, as risk aversion sweeps through financial markets.\u00a0<\/p>\n

Bitcoin price dropped as much as 7.7% to $39,796, the first time the largest cryptocurrency by market value has been below $40,000 since March 16. Ether, the second largest, was down as much as 9.5%, dipping below $3,000. Altcoin, or alternative coin, Luna was down around 11%, while Avalanche was off 13% and Cardano slumped 11%.\u00a0<\/p>\n

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Since peaking at just above $48,000 in late March, Bitcoin — and other tokens — have been dragged lower by concerns about tighter monetary policy. Even the buzz around last week\u2019s Bitcoin 2022 conference in Miami wasn\u2019t enough to reverse the trend.\u00a0<\/p>\n

\u201cHistorically, altcoins have a tendency to over perform Bitcoin to the downside in strong bearish trading environments,\u201d said Josh Olszewicz, head of research at crypto investment firm Valkyrie. \u00a0\u201cAltcoin trading participants often have less longer-term conviction.\u201d\u00a0<\/p>\n

Bitcoin Extravaganza is \u2018All About Eye-Catching\u2019 Post Pandemic<\/h3>\n
U.S. inflation likely accelerated to 8.4% in March, the fastest pace since early 1982, economists surveyed ahead of data due Tuesday predict. The Federal Reserve may need to hike interest rates above 4%, Goldman Sachs Group Inc. Chief Economist Jan Hatzius said Friday. \u00a0 \u00a0\u00a0<\/p>\n
\u201cFed tightening by 0.5 percentage point steps at upcoming meetings as well as $95 billion per month balance sheet run-off sent crypto markets spiraling lower,\u201d Teong Hng, chief executive of Hong Kong-based Satori Research, said. \u00a0<\/p>\n
Bitcoin has been in a trading range of around $35,000 to $45,000 for much of the year so far. A breakout above $48,000 last month briefly erased its losses for the year, but the token hit resistance around its 200-day moving average.\u00a0<\/p>\n
Bitcoin\u2019s tendency to move in sync with assets such as U.S. tech stocks makes the drop less of a surprise after a tough week for American markets. Its correlation with the Nasdaq 100 Index is now back at record levels.\u00a0<\/p>\n
\u201cThe Nasdaq 100 closed below its 50-day moving average on Friday, so now wouldn\u2019t be a bad time for Bitcoin to break its correlation with the tech-laden index,\u201d said Antoni Trenchev, managing partner of crypto lender Nexo, in emailed comments. \u201cClose above $45,000 again and we\u2019re back in the game.\u201d<\/p>\n
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