Since last week, cryptocurrency Bitcoin prices have continued to fall, mirroring the overall stock market decline.
On Monday evening, bitcoin, the world’s most popular cryptocurrency, traded at $31,075.70, down 10% from Sunday at 5 p.m. EDT, Prices were provided by CoinDesk. Since November, Bitcoin’s price has fallen 54% from its record high of $67,802.
There is a good chance that it will be the worst five-day stretch since it fell almost 38% in the five days ending March 16, 2020.
The price of Ethereum fell nearly 10% to $2,286.10 on Monday, the second-largest cryptocurrency.
Among cryptocurrencies in general, Bitcoin is known for its violent price swings. The market used to be dominated by individual investors, but institutional investors, such as hedge funds and money managers, have now taken over.
Crypto markets are increasingly moving along with traditional markets, as more professional investors trade the currency. Similarly to technology stocks, cryptocurrencies are viewed by many institutional investors as risk assets. Market volatility tends to lead investors to seek out safer corners.
In response to the Federal Reserve’s announcement of an interest rate increase of a half-point, the largest since 2000, last week, the stock market dropped. During the summer, there might be further rate hikes, according to Chairman Powell. As well as unwinding some of its $9 trillion asset portfolios, the central bank is repurchasing some bonds.
On Monday, the tech-heavy Nasdaq Composite fell by 26% year to date to a new 52-week low.
For much of 2022, cryptocurrency prices have stagnated as investors prepare for higher interest rates. According to CoinMarketCap, nearly $155 billion in market volume was traded over the past 24 hours in the crypto market. The total cryptocurrency market value fell to $1.4 trillion over the past 24 hours.
The cryptocurrency market has been trying to establish itself as a household name. Crypto platforms are spending more money on lobbying efforts and marketing directly to consumers after receiving venture capital investment.