The cryptocurrency market has continued to decline since last week, reflecting the fall of the broad stock market.
The world’s largest cryptocurrency bitcoin fell to $ 31,075.70 on Monday night, down 10% from Sunday at 5pm on EDT, according to CoinDesk prices. The value of bitcoin fell 54% from a record high of $ 67,802 in November.
It is on track for the worst five-day period of those five days that ended on March 16, 2020, when it fell nearly 38%.
Ethereum, the second-largest cryptocurrency, fell to $ 2,286.10 on Monday, almost 10% below Sunday’s price.
More widely bitcoin and cryptocurrencies are known for their strong price fluctuations. Individual investors have controlled the market for years, but institutional investors such as hedge funds and money managers have begun to dominate it.
With the growing number of professional investors trading cryptocurrencies, the market is increasingly moving in tandem with traditional markets. Many institutional investors who buy cryptocurrencies view them as risky assets, much like technology stocks. Investors tend to retreat to safer corners of the market during violent skirmishes.
The stock market declined last week the day after the Federal Reserve announced a rate increase of half a point, the highest since 2000, to fight inflation. Fed Chairman Jerome Powell said further growth could occur in the summer. The central bank is also deploying part of its $ 9 trillion asset portfolio.
The Nasdaq Composite technology reached a new low in 52 weeks on Monday, down 26% since the start of the year.
Cryptocurrency prices have remained for most of 2022 as investors prepare for rising interest rates. The crypto market has been active for the past 24 hours, with a market volume of nearly $ 155 billion over the period, according to CoinMarketCap. The global crypto market has fallen to 1.4 trillion.
Cryptocurrency companies are working to become famous. Filled with venture capital, crypto platforms spend more money on lobbying and marketing directly to consumers.
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Appeared in the print edition of May 10, 2022 as “The price of bitcoin has fallen by 55% from its maximum.”