If you invested $1,000 in Bitcoin in November 2021, you would have lost half your money owing to tightening liquidity, as the price of bitcoin nosedives.
After a broader stock sell-off in the United States last week sent the cryptocurrency market into a frenzy and caused the cryptocurrency to tumble by nearly 10%, Bitcoin has continued to fall.
According to Coindesk data, Bitcoin, the world’s largest digital currency by market value, was down about 3% at $33,498 as of writing
Bitcoin has dropped to its lowest price since late January. This year, the virtual currency has been trading in a confined range as it strives to recapture its late-2021 highs.
It is now down more than 50% from its peak price of $68,990.90 in November 2021.
The dip comes after the blue-chip Dow Jones Industrial Average dropped over 1,000 points and the Nasdaq fell 5% on Thursday. These were the largest single-day losses since 2020. On Friday, the Dow and Nasdaq plummeted once again.
In response to inflationary concerns, the Federal Reserve hiked its benchmark interest rate by half a percentage point on Wednesday.
The stock market rose after Fed Chair Jerome Powell stated that a 75-basis-point rate hike is not being discussed. Investors, though, had erased the Fed rally’s gains by Thursday.
“Overall markets remain under pressure from inflation and growth fears,” said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno.
He said that if bitcoin falls below $30,000, it could even drop further to $25,000 before any “significant” move back up.
