Bitcoin hovers near three-month lows on risk aversion

Bitcoin fell on Wednesday on track for the fourth daily loss in a row, trading near three-month lows on risk aversion. 

The crypto market is still tense amid a lack of positive stimuli, while US stocks continue to tumble on Wall Street, led by the tech sector.

Prices

Bitcoin fell 0.6% at Bitstamp today to $88,046, with a session-high at $89,279.

On Tuesday, bitcoin tumbled 3.25%, the third loss in a row, plumbing a three-month low at $85,953.

Crypto Market Value 

The market value of cryptocurrencies fell by $25 billion on Wednesday to a total of $3020 trillion.

Positive Stimuli 

Bitcoin started the year with strong momentum, underpinned by US President Trump’s positive stance on the crypto industry, with traders expecting a more supportive and clear regulatory framework for the crypto market. 

But the steam has gone out of the market since Trump’s executive crypto order in January, as it was more conservative than expected, especially when it comes to forming a strategic bitcoin reserve.

And with the lack of fresh new stimuli, the market is now waiting for more signals on the future of regulations and institutional demand directions, making prices more volatile in recent weeks.

Wall Street

US stock indices expanded the losses on Tuesday for the fourth straight session amid uncertainty about the direction of monetary policies and global trade tensions.

S&P 500 tumbled 0.5%, while NASDAQ plunged 1.25%, both hitting six-week lows as the tech sector weakened.