Bitcoin and ether tumble to multi-month lows on US recession worries

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

Bitcoin and ether fell sharply on Friday to reach multi-month lows, as broader financial markets took a hit from weak US data and shifted towards safer assets amid concerns over a possible recession.

A boost was given to crypto markets earlier this year when the US Securities and Exchange Commission approved an exchange-traded fund that tracks the spot price of bitcoin and ether.

Recently, however, bitcoin has fallen together with other assets, including global equities, in a broad selloff as investors fear that a US recession could be on the horizon, with rising geopolitical concerns also having an impact. The cryptocurrency is down nearly 20 per cent from its March 2024 peak.

“It serves as a stark reminder that bitcoin and crypto at large are classified as risk assets and sit at the pointy end of the risk spectrum,” said Tony Sycamore, market analyst at IG.

Bitcoin slid to US$53,091 (RM233,000), its lowest since late February, and was last fetching US$54,112, while ether fell to its weakest since mid-January and was last down 16 per cent at US$2,300.

Bitcoin needs to hold the trend channel support at the US$54,000/US$53,000 area to “prevent further capitulation towards US$48,000,” said Sycamore, adding that ether has immediate support at US$2,200.

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