Major cryptocurrencies fell sharply on Monday, dragged down by a new wave of selling amid strong risk aversion. Bitcoin dropped 8% to below $85,000 during the session, while Ether fell 10% to below $2,750. Other digital assets such as Solana also retreated by around 10%, extending a fall that began in October. This pullback comes as markets question the valuation of technology stocks and the outlook for the global economy. In Asia, a warning from the People's Bank of China about illegal activities linked to digital currencies added to pressure on the sector. The statement had a direct impact on technology stocks listed in Hong Kong - particularly those exposed to cryptos.
Analysts highlight a growing correlation between cryptocurrencies and stock indices such as the Nasdaq, reflecting an increasing synchronization of market moves. The decline in speculative appetite is also reflected in low trading volumes and a drop in open interest on derivatives products. In this environment, digital assets could remain under pressure over the coming weeks.
