Bitcoin extended its decline for another week as risk appetite in global financial markets eased. It fell 2.5% to $ 45,583 on Monday, down 32% from a record high in early November.
Ethereum also dipped by 4.3%, while popular DeFi tokens such as Solana, Cardano, Polkadot and Polygon dropped significantly.
Now, the largest cryptocurrency is heading to $ 45,500, where a breakout could provoke a deeper fall to $ 40,000 and below.
This is understandable because central banks around the world are shifting to more aggressive tones on monetary policy in order to curb accelerating inflation. They are also monitoring the impact of the omicron, which leaves investors some worry that risky assets such as cryptocurrencies and tech stocks may undergo strong correction after rising from pandemic lows.
Bitcoin is currently at the 55-week simple moving average, where it usually climbs up several times.
Bitcoin has been declining for five consecutive weeks. Unlike most traditional assets and security classes, digital tokens are traded around the clock, often on loosely regulated online exchanges around the world.