Crypto sell-off deepens as weak economic data dampens risk-taking
shares of crypto-linked companies slumped as bitcoin fell more than 15% on Monday, after weak economic data last week triggered fears of a recession and set off a frenzied selling of risky assets.
The plunge marks a stunning reversal for the sector that until recently was riding a wave of optimism sparked by the approval of exchange-traded funds (ETFs) tied to the spot prices of bitcoin and ether, the two biggest cryptocurrencies.
Republican presidential candidate Donald Trump's pro-crypto speech at a bitcoin conference last month also bolstered sentiment, but data showing higher unemployment and weak manufacturing activity squeezed risky assets.
«We are not surprised by Bitcoin's snap reaction as the only weekend traded market. We don't see any incremental negatives for crypto here,» Bernstein analyst Gautam Chhugani wrote in a note.
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