Bitcoin retreats to August low

Bitcoin extended losses yesterday, falling to the lowest level since August after a global sell-off in riskier assets took the overall value of the cryptocurrency market back below $2 trillion.

The largest digital coin fell as much as 7.6 per cent to $40,237 before paring some of the decline. Second-biggest token Ether was trading below $3,000, while Cardano, Solana, Polkadot and Dogecoin also fell, according to tracker CoinGecko. All were trading off their lows for the day.

Virtual currencies were roiled amid fears of contagion from the liquidity crisis at Evergrande Group.

A global stock retreat abated somewhat in Asia yesterday.

More liquidation

“Bitcoin and Ether are getting swept up in the riskoff momentum that has been gaining since late last week,” said Adam Reynolds, chief executive for Asia-Pacific at Saxo Capital Markets Pte. He expects “more liquidation to come.”

About $1.4 billion of cryptocurrency liquidations occurred in the past 24 hours, according to data from Bybt.com.

These happen when leveraged positions are closed by exchanges for failing to meet margin requirements.