Since peaking at just above US$48,000 in late March, Bitcoin – and other tokens – has been dragged lower by concerns about tighter monetary policy.
Inflation in the United States likely accelerated to 8.4 per cent in March, the fastest pace since early 1982, economists surveyed ahead of data due on Tuesday predicted.
The token traded at US$42,270 at 9.40am in Hong Kong, down about 2 per cent for the day.
Bitcoin has been in a trading range of around US$35,000 to US$45,000 for much of the year so far.
“The pullback from the late March high is more technical than anything else,” Mr Maley said in e-mailed comments.
Still, Bitcoin’s tendency to move in sync with assets such as US tech stocks makes the drop less of a surprise after a tough time for American markets last week.