Bitcoin falls lowest in a month with global crypto market value dropping to $1.9 Trillion

Bitcoin dropped to its lowest level in more than a month and other digital assets tumbled as investors’ tendency toward risk aversion, combined with the lack of a clear catalyst for buying, drove the market lower.

The largest cryptocurrency fell as much as 4.2% to $38,580 while Ether dropped 5.3%, declining to as low as $2,885. The global crypto market’s value dropped about 4% in the past 24 hours to $1.9 trillion. Altcoins were among the biggest decliners, with Bitcoin Cash, EOS and Ethereum Classic each decreasing more than 6% at one point.

Bitcoin has been struggling along with risk assets in recent months. It's largely traded in a range of US$35,000 to US$45,000 this year as the Federal Reserve started raising interest rates amid stubbornly high inflation.

Trading volumes have also decreased, including across Coinbase, Bitfinex, Kraken, Bitstamp and other exchanges. Google searches for the word “Bitcoin” have also declined, and social-media activity via the Crypto Subreddit -- as measured by things like comments and posts per day -- are down from mid-2021 levels.

Investors from the world of traditional finance continue to be risk-averse, while crypto-centric holders are awaiting any signs of fresh interest from recent significant Bitcoin buyers which have been building a Bitcoin position in support of the Terra blockchain and its stablecoin.