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The
biggest cryptocurrency fell 5.5% in early trade <BTC=BTSP> after
slumping 7.7% a day earlier, when it dropped under $10,000 for
the first time since Aug. 1 and posted its biggest fall since
July 16.
It was last down 1.7% at $9,859.
Traders said it was difficult to pinpoint the catalyst that
triggered the losses.
Some cited selling caused by technical trading as bitcoin
approached the widely-watched $10,000 mark. Others said nerves
from the recent fall in global equity markets on fears of a
recession had infected cryptocurrencies, though exactly how
digital coin and equity markets are linked is up for debate.
"The link (with stocks) is unreliable on a day to day basis,"
said Craig Erlam, senior market analyst at OANDA, adding that
the bitcoin market was unpredictable.
Last week, bitcoin climbed as stocks fell, prompting some crypto
enthusiasts to argue it was behaving like a safe haven in a
manner similar to gold or the Japanese yen. But market players
said the gains reflected its potential for quick gains more than
any safe-haven credentials.
Other major cryptocurrencies, including Ethereum <ETH=BTSP> and
Ripple's XRP <XRP=BTSP>, which are often tightly correlated with
bitcoin, also fell.
(Editing by Deepa Babington)
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