Bitcoin briefly fell below $ 30,000, falling more than 56% from its highest level of all time

Bitcoin fell below $ 30,000 late Monday, breaking a symbolic price threshold.

At the lowest price, the world’s most popular cryptocurrency was more than 12% lower that day – and more than 56% lower than the record price in November of about $ 69,000. It later recovered from some of those losses and traded at $ 31,181.28 on Monday at 22:38 ET, according to Coin Metrics.

The last time bitcoin was traded below $ 30,000 was in July 2021, when digital assets were traded as high as $ 29,839.80. Yuya Hasegawa, a crypto market analyst at Japan’s Bitcoin exchange Bitbank, told CNBC earlier that bitcoin would have to maintain a key psychological price level of $ 33,000 to prevent further deterioration in technical sentiment.

The price drop comes amid a broader, multi-day sell-off that has captured much of the crypto market and stocks.

The crypto market, which trades 24 hours a day, has fallen by almost 10% in the last 24 hours, according to CoinMarketCap. Meanwhile, all three major stock indexes ended lower on Monday, and the S&P 500 fell to its lowest level in more than a year.

Shares have been in steady decline since Thursday, when the Dow Jones Industrial Average and Nasdaq Composite recorded their worst one-day declines since 2020.

Last year, bitcoin and other major cryptocurrencies tracked the movement of technology stocks, and some analysts say this close correlation between bitcoin and Nasdaq calls into question the argument that cryptocurrency functions as a hedge against inflation.

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