The cryptocurrency market has continued to decline from last week, and the mirror has fallen to the broader stock market.
The world’s largest cryptocurrency, bitcoin, fell to $ 31,075.70 on Monday night, down 10% from Sunday at 5pm EDT, according to prices from CoinDesk. Bitcoin’s price has fallen 54% from a record high of $ 67,802 in November.
It is approaching the worst five-day stretch since the five days ended March 16, 2020, when it fell almost 38%.
Ethereum, the second-largest cryptocurrency, fell Monday to $ 2,286.10, almost 10% below its price on Sunday night.
Bitcoin and cryptocurrencies are known for their sharp price fluctuations. Individual investors controlled the market for years, but institutional investors, such as hedge funds and money managers, have begun to dominate it.
With more professional investors trading in crypto, the market has increasingly moved in line with traditional markets. Many institutional investors who buy cryptocurrencies treat them as risk assets, similar to technology stocks. Investors tend to retreat to safer corners of the market during turbulent battles.
The stock market fell last week the day after the Federal Reserve announced a half-point rate hike, the largest since 2000, to fight inflation. Fed Chairman Jerome Powell said there could be further increases over the summer. The central bank is also liquidating some of its $ 9 trillion asset portfolio.
The technology-heavy Nasdaq Composite reached a new low of 52 weeks on Monday, falling 26% so far this year.
Cryptocurrencies have been stagnant for much of 2022 as investors prepare for rising interest rates. The crypto market has been active for the past 24 hours, with nearly $ 1[ads1]55 billion in market volume in that period, according to CoinMarketCap. The global crypto market fell to $ 1.4 trillion.
Cryptocurrency companies have worked to become well-known names. In line with venture capital investments, cryptocurrencies have spent more money on lobbying and marketing directly to consumers.
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Appeared in the print edition on May 10, 2022 as ‘The Bitcoin price falls 55% from its high level.’