The price of Bitcoin (BTC) fell below $40,000 U.S. for the first time in a month amid broader market volatility and as investors assess the risks from rising interest rates and war in Europe.
Bitcoin last fell 7% to $39,785.68 yesterday (April 11), falling below the key $40,000 support level for the first time since March 16.
The decline came after the 10-year Treasury yield hit a three-year high of 2.78%. Riskier assets tend to fall when yields rise. The tech-heavy Nasdaq index fell nearly 2%.
Although Bitcoin should trade independently of the stock market, a correlation between the two has been high in recent months.
Two weeks ago, Bitcoin climbed over the $48,000 U.S. level, turning positive for the year. In early trading today (April 12), Bitcoin has recovered somewhat to trade at $40,250.00 per coin.
Tokens across the cryptocurrency market have also fallen in recent days. Ethereum (ETH) declined by 9% yesterday, according to data from Coin Metrics. Solana (SOL) and Cardano (ADA) each declined 11%.
