Bitcoin is an unstable asset and is known to swing more than 10% higher or lower in one day.
Jakub Porzycki Nurfoto | Getty Images
Bitcoin continued to slide after a wider sell-off in the U.S. last week caused a frenzy in the cryptocurrency market and spurred bitcoin to fall by about 10%.
Bitcoin, the world’s largest digital currency by market value, fell more than 3% to $ 34,582.36 on Sunday, according to Coin Metrics. This year, Bitcoin has been trading in a narrow range as it tries to regain its highs from the end of 2021.
The decline comes after the Dow Jones Industrial Average with blue chips lost more than 1,000 points on Thursday, and the Nasdaq fell 5%. Those losses marked the worst one-day decline since 2020. The Dow and Nasdaq fell again on Friday.
Meanwhile, the Federal Reserve raised its reference interest rate by half a percentage point on Wednesday in response to inflationary pressures.
The stock market strengthened after Fed President Jerome Powell said no increase in the rate of 75 basis points was being considered. But by Thursday, investors had wiped out Fed gains.
The global market capitalization of cryptocurrencies was $ 1.68 trillion on Sunday, according to data from CoinGecko.com, and the volume of cryptocurrency trading on the last day was $ 119 billion.
–CNBC Tanaya Macheel contributed to reporting