Since January on Monday, it fell to its lowest level since January as the slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with riskier assets like tech stocks.
The January low of $32,951 was tested in the morning with a drop to as low as $33,266. A fall below that level would be its lowest since July of last year.
It then climbed to around $33,500, down 1.4%.
Matt Dibb, COO of Singapore-based platform Stack Funds, said that most cryptocurrencies are still classed as a risk asset, and like what we have seen with the Nasdaq, most cryptocurrencies are getting pummelled.
The tech heavy Nasdaq fell 1.5% last week and lost 22% year to date, hurt by the prospect of persistent inflation forcing the U.S. Federal Reserve to hike rates despite slowing growth. The Nasdaq futures were down a further 0.8% in Asia trade on Monday morning.
Dibb said other factors in the decline over the weekend -- bitcoin closed on Friday around $36,000 -- were the crypto market's notoriously low weekends, as well as short-lived fears that the algorithmic stable coin called Terra USD UST could lose its peg to the dollar.
Stable coin is a digital token that is tied to other traditional assets, often the U.S. dollar.
The UST is closely watched by the community because of the novel way in which it maintains its 1: 1 dollar peg, and because its founders plan to build a reserve of $10 billion worth of bitcoins to back the stable coin, which could potentially spill over into the bitcoin markets.
The world's second largest criptome, which underpins the ethereum network, fell as low as $2,421 on Monday, its lowest since February.