Bitcoin slides as crypto sell-off resumes

(Sharecast News) - Bitcoin tumbled on Monday, as investors resumed a flight from risk and sold out of cryptocurrencies. The weeks-long sell-off across cryptocurrencies looked to have settled last week, with Bitcoin moving back above $90,000.

However, the rout resumed on Monday. As at 0830 GMT, Bitcoin was down 4% at $86,536. The benchmark coin has now lost 22% over the last month.

Other cryptocurrencies were also lower, with Ethereum off 5% at $2,833 and Solana losing around 5% at $128.

Investors are becoming more risk averse on the back of persistent macroeconomic concerns, uncertainty about the direction of US interest rates and mounting fears about the sky-high valuations of tech stocks.

Kathleen Brooks, research director at XTB, said there was no obvious driver of the latest round of selling.

"However, the sharp decline in volatility last week - the Vix fell back below the average for the last 12 months - may have unnerved some investors, who remain concerned about an uncertain outlook into the year end," she added.

"Bitcoin tends to be a leading indicator for overall risk sentiment right now, and its slide does not bode well for stocks at the start of this month."