Bitcoin was last trading at about $29,800 per coin on Tuesday, its lowest level since last month.
“Bitcoin is the ultimate risky asset right now and it could see intense selling pressure if Wall Street enters into panic selling mode,” wrote Edward Moya, senior market analyst for the Americas at Oanda, in a Monday research note.
The latest drop came as investors worried about the impact of the Delta variant on the reopening of the global economy. Shares in airlines, cruise lines and energy stocks all took a dive in the United States on Monday. Long-term bond rates continued to slide as well, a sign that fixed income investors are now far more worried about a Delta variant-induced economic slowdown than they are about rising inflation fears.
US stock futures also edged higher. Dow futures were last up about 0.7%, while futures for the S&P 500 and the Nasdaq were up about 0.6% and 0.5%, respectively.
— Paul R. La Monica and Robert North contributed to this report.