The cryptocurrency market has continued its decline since last week, reflecting the decline of the broader stock market.
The world’s largest cryptocurrency, bitcoin, fell to $ 30,641 on Monday afternoon, down 11% from Sunday at 5pm EDT, according to CoinDesk prices. The price of Bitcoin fell 55% from a record high of $ 67,802 in November.
It is on track for the worst five-day five-day period ending March 16, 2020, when it fell nearly 38%.
Ethereum, the second-largest cryptocurrency, fell to $ 2,271.24 on Monday, nearly 11% below its price on Sunday night.
Bitcoin and cryptocurrencies are widely known for their violent 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 more professional investors trading cryptocurrencies, the market has increasingly moved in tandem with traditional markets. Many institutional investors who buy cryptocurrencies treat them as risky assets, similar to technology stocks. Investors usually retreat to safer corners of the market during turbulent attacks.
The stock market fell last week a 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 there could be further increases in the summer. The central bank is also releasing a portion of its $ 9 trillion asset portfolio.
The technically heavy Nasdaq Composite has fallen by almost 26% to date.
Cryptocurrency prices are stagnating for most of 2022 as investors begin to prepare for rising interest rates. According to CoinMarketCap, the cryptocurrency market has been active in the last 24 hours, with nearly $ 140 billion in market volume over that period. The global cryptocurrency market fell to $ 1.4 trillion.
Cryptocurrency companies are working to become well-known names. Filled with venture capital investments, crypto platforms spend more money on lobbying and marketing directly to consumers.
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