LONDON (Reuters) – The cryptocurrency ether fell as much as 7% on Thursday as it was caught in a broader market sell-off and failed to get a boost from the launch this week of the first U.S. exchange-traded funds tracking the currency.
The world's second-largest cryptocurrency fell 6% to $3,170 in what would be its biggest daily percentage drop in three months, leaving it broadly in the middle of its recent trading range.
fell 3% to $63,930.
The first U.S. ETFs tied to the price of ether began trading on Tuesday, but failed to generate the price bounce that spot bitcoin ETFs created earlier in the year.
Instead, broader macroeconomic trends have taken hold. Stocks around the world have plunged in recent weeks, particularly tech stocks and other “risk assets” that typically move in line with cryptocurrencies.
The Nasdaq lost nearly 4% on Wednesday, its worst one-day drop since 2022, as lackluster earnings from Alphabet (NASDAQ:) and Tesla (NASDAQ:) undermined investor confidence in the already lofty valuations of the Magnificent Seven stocks. [.N]
Shares of cryptocurrency-related companies such as miners fell in pre-market trading on Thursday: Coinbase (NASDAQ:) shares fell 2.3%, Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:) shares fell 3.4-4%.
European stocks fell 1.4% in early trading on Thursday.
