LONDON (Reuters) – Prices of cryptocurrencies plunged on Monday as concerns over the spillover risk to the global economy from Chinese property group Evergrande’s troubles rippled over to wider markets.
, the world’s biggest and best-known cryptocurrency, tumbled more than 8% to $42,453, its lowest level since Aug. 7 before trimming some losses to trade down 7%. It hit a near four-month high above $52,000 on Sept. 6.
Smaller rival Ether, the coin linked to the blockchain network, fell more than 10% below $3,000 for the first time since early August.
The loss in the value of cryptocurrencies comes at a time when institutional interest in the space has surged and some investment banks have ramped up their forecasts for cryptocurrencies in the coming months.
“Their fate seems a little tied to equities at the moment, and the price action is incredibly similar too,” said John Marley, CEO of forexxtra, a London-based FX consultancy.
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