Bitcoin prices have fallen sharply amid the global selloff in stocks.
Luke MacGregor | Bloomberg | Getty Images
Bitcoin price fell sharply on Monday as investors began to reduce risk amid the global decline in equity markets.
While Bitcoin Often referred to as a safe haven, the growing reality is that broader declines in risk assets tend to lower its price. Similar to stocks, Bitcoin’s price usually experiences a slide in September.
Global stock markets slide as investors fear to spread the risk of a market shakeout in the Chinese real estate market tied to the highly indebted developer Evergrande. Investors are also focusing on the Federal Reserve and whether it will signal its willingness to remove monetary stimulus from the economy. The central bank will begin its two-day meeting on Tuesday.
The crypto decline comes as uncertainty about how stablecoins will be regulated grows. The Financial Stability Oversight Council could classify them as systemically risky, the New York Times reported over the weekend, which could subject them and their operators to strong regulation.
The President’s Working Group on Financial Markets is preparing a report on stablecoins, and the Fed is expected to release a report on central bank digital currencies this month that could affect stablecoin risks.
As Bitcoin slipped from its older rival, gold, was up 0.4% in the green with futures.