TOKYO, May 10, 2022 (BSS/AFP) - Bitcoin slumped below $30,000 for the first
time since July 2021 on Tuesday as cryptocurrencies track sinking markets
with investors spooked by aggressive US monetary tightening and surging
inflation.

  The world's largest cryptocurrency by market value fell as low as $29,764
in Tuesday trade, before recovering above $30,000, extending a recent
collapse in price as investors desert assets viewed as risky.

  Bitcoin's value has more than halved since a November surge that saw the
token hit a record of nearly $69,000.

  While crypto enthusiasts view bitcoin as a hedge against inflation, an
influx of more traditional investors tend to view it as a riskier asset.

  They have been offloading bitcoin and other digital tokens along with other
volatile assets like tech stocks as the US Federal Reserve moves to hike
interest rates to tackle decades-high inflation.

  "Bitcoin is breaking below some key technical levels as the never-ending
selloff on Wall Street continues," said Edward Moya, senior market analyst
for the Americas at Oanda.

  "The institutional investor is paying close attention to bitcoin as many
who got in last year are now losing money on their investment," he added.

  While the token's "long-term fundamentals have not changed in months",
concerns about growth and a possible recession are creating "a very difficult
environment for cryptos", Moya said.

  "No one is looking to buy the crypto dip just yet and that leaves bitcoin
vulnerable here."

  The slump in crypto follows dives on US equities and other markets, with
the tech-rich Nasdaq closing down 4.3 percent on Monday, the S&P 500
declining 3.2 percent and the Dow ending off 2.0 percent.