Bitcoin hovers around $20,000 on risk aversion

Bitcoin once again traded around the $20,000 level, underperforming equities amid lingering concerns of a further crypto market crash.

The largest cryptocurrency fell as much as 4.8% to $19,832, before settling around $20,000 at 3:11 p.m. in New York. Ether fell 6.1% to $1,053. Solana, cardano, polkadot and dogecoin also fell.

Cryptocurrencies have been fluctuating for months in the same direction as stocks, as investor appetite for risky assets waned due to growing fears about an economic downturn. Bitcoin appears to be consolidating around the $20,000 level, similar to its fluctuation near the $30,000 mark for much of May and June.

The recovery from lows below $20,000 came as broader risk appetite stabilized and speculative investors await their next trading catalysts, Informa Global Markets wrote in a note.