Cryptocurrencies hit by exodus from risk assets

Cryptocurrencies were caught in a broad flight from risk assets yesterday, sending bitcoin and ether to multi-month lows as worries persisted about lofty tech valuations and bets on near-term Federal Reserve policy easing faded.

- RAE WEE

A television screen shows crypto market news at the Nasdaq MarketSite in New York on Thursday.

(PHOTO: BLOOMBERG)

Bitcoin, the world’s largest cryptocurrency, fell 2.1%, breaking below $86,000 to hit a seven-month trough of $85,350.75 in Asian trading. Ether also slid more than 2% to its lowest in four months at $2,777.39.

Both tokens were staring at weekly losses of roughly 8%.

Cryptocurrencies are often used by investors as a barometer of risk appetite and the sharp slide shows how fragile the mood in the market has turned in recent days, with high-flying artificial intelligence stocks tumbling and volatility spiking.