Bitcoin plunge: Comment

Kyle Rodda, Senior Market Analyst, Capital.com

“Bitcoin is sending an ominous signal. So often the canary in the coal mine for broader risk assets, the wiping out of year-to-date gains suggests risk appetite is diminishing significantly in the markets. There wasn’t the dysfunction in crypto markets over the weekend seen months ago after US-China trade tensions flared. But we’ve seen a significant leap in activity in the crypto-space, with trading activity at stages double (+106%) what we’d normally expect to see. The weekend’s losses have been largely recovered to kick-off the week. However, the approximately 26% high to low move in Bitcoin fits the technical definition of a bear market, possibly sounding the alarm for crypto assets and broader financial markets.”