Cryptocurrencies plunged on Monday, with bitcoin dropping more than 12 percent to a one-week low as rising US bond yields lifted the dollar broadly and hurt other safe assets that pay no income.
Bitcoin fell as far as $33,447 (roughly Rs. 24.5 lakhs), its lowest since January 6. Ethereum which often moves in tandem with Bitcoin, fell as much as 20 percent to a one-week low of $1,007.51 (roughly Rs. 74,000).
The falls are much larger than the 1 percent drop that sent gold prices to a one-month low, but reflect a wider dollar bounce against major fiat currencies as the prospect of higher US interest rates tempers popular bets against the dollar.
“It’s just another way of expressing a dollar view,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne.
“I know it’s a macro play as well, but I do think that gold and Bitcoin have