Bitcoin has fallen for a third day as global market anxiety over escalating US-China tensions weighs on cryptocurrencies.
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As of 2:57 PM local time in Tokyo on Tuesday, the largest digital coin has dropped 1.6% to $22,769. At one point, Ether was down 3.7%, with lesser tokens like Polkadot and Cardano also losing value.
If she arrives in Taiwan on Tuesday as planned, US House Speaker Nancy Pelosi will be the highest-ranking American politician to visit in 25 years. A journey to the island, which China claims as its own, would be met with strong opposition from Beijing. Investors dumped stocks and US equity futures due to the escalation risk.
Before the recent volatility, Bitcoin had been on track to post its largest monthly gain since last October after making a weekend push toward $25,000. The increase has bolstered the belief that the worst of this year's crypto collapse is over (Bitcoin is down approximately 51 percent).
Options market wagers indicate that investors expect Bitcoin to range between $20,000 and $25,000 over the next 12 months. Based on information provided by Coinglass, this is because there are a lot of call and put contracts, or open interest, outstanding at certain strike prices.
Bitcoin's recent upswing had "all the feeling of a bear-market rally as we may be witnessing in equity markets," according to Oanda senior market analyst Craig Erlam.
It still has potential, he wrote in a letter, so don't count it out just yet.
