Bitcoin extended its five-week slide from an all-time high with risk sentiment across global financial markets dwindling.
The largest cryptocurrency by market value declined as much as 2.5 per cent to $45,583 on Monday in New York. It has slumped about 32 per cent since setting a record high in early November. Ethereum dropped as much as 4.3 per cent, while popular DeFi tokens such as Solana, Cardano, Polkadot and Polygon also slipped.
Central banks globally are prioritising the fight against elevated inflation by tightening monetary settings, while also keeping a wary eye on the impact of Omicron. That backdrop has investors questioning whether so-called risk assets such as cryptocurrencies and technology shares are due for a rougher patch after surging from pandemic lows.
Bitcoin is also facing some price levels that technical analysis watch for signs of future direction. The digital currency is sitting at its 55-week simple moving average. The token has typically bounced higher the past several times it reached the level.
Bitcoin dropped for five consecutive weeks as measured by the seven days ended Friday. Unlike most traditional asset classes and securities, digital tokens trade around the clock, often on lightly regulated online exchanges worldwide.