Bitcoin, ether hit multi-month lows as recession worries take hold

(Reuters) -Bitcoin and ether plunged on Monday to multi-month lows as worries over a possible U.S. recession in the wake of soft data gripped financial markets and triggered a rush to safe-haven assets.

Crypto markets have gotten a boost this year after the U.S. Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether.

More recently, however, bitcoin has fallen alongside other assets including global equities in a broad selloff as investors fear a U.S. recession could be on the horizon, with rising geopolitical worries also weighing. It has lost over a third of its value since hitting a record high in March.

“It’s a big reminder that bitcoin and crypto in general are risk assets and sit at the pointy end of the risk spectrum,” said Tony Sycamore, market analyst at IG.

fell 13% from its close on Sunday to $51,560, heading for its largest one-day fall since November 2022 and its lowest since February. Ether slid 17% to its lowest since mid-January at $2,277.

Sycamore said bitcoin was testing trend channel support at the $54,000/$53,000 area and needed to hold there to “prevent further capitulation towards $48,000.”

Shares in crypto-related U.S. stocks listed in Frankfurt fell heavily in early trading on Monday, with Coinbase (NASDAQ:) down over 18%, while those in miners Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:) were down 17.7% and 20%, respectively.