Bitcoin falls below $50,000 first time since Feb amid market panic

Bitcoin suffered a dramatic collapse on Monday, plunging below the crucial $50,000 mark for the first time since February. The cryptocurrency market as a whole was sent into a tailspin as investors fled riskier assets amid growing fears of a global economic downturn.

The cryptocurrency’s value tumbled by over 14 per cent, marking its worst daily performance since June 2022. Other major cryptocurrencies, such as Ethereum, also experienced significant losses. The crypto asset fell 17 per cent to $2,259.35, bringing its three-day loss to 24 per cent and erasing its 2024 gain.

The crypto stocks were among the hardest hit in premarket trading as Coinbase dived by 18 per cent, while MicroStrategy sank nearly 22 per cent. Mining stocks also incurred double digit losses.

The broader market sell-off, triggered by concerns over a potential US recession, intensified pressure on digital assets. The Nasdaq Composite entered correction territory, while the Japanese stock market suffered its worst day since 1987.

As investors sought safer havens, Bitcoin and other cryptocurrencies became collateral damage in the market turmoil. While some analysts believe the sell-off may be overdone, the immediate outlook for the crypto market remains uncertain.

Attribution: CNBC