Bitcoin fell below the $33,000 mark, less than half of its value at its peak last November. Additionally, stock markets across the world are also seeing a dip.
Bitcoin value falls again
Bitcoin’s value is sliding down since its peak in November 2021. The fall of Bitcoin in recent times adds to the shock as stock markets around the world are tumbling. On Monday, key indexes fell further down. Japan’s Nikkei dropped by 2.5 percent, and the Dow Jones, S&P 500, and Nasdaq in the US lost over 1 percent in their opening trade. Investors are moving towards safer investments such as the dollar. As the market’s uncertainty grows, investors sell high-risk assets such as cryptocurrency and move to safer options.
Bitcoin, accounting for over 30 percent of the crypto market saw a plunge of over five percent in the last day. Additionally, the cryptocurrency fell over 14 percent in the last week. In the same period, the value of Ethereum also fell by more than 10 percent. Similarly, the performance of other crypto coins is also seeing a decline. Solana, Uniswap, Polygon, Stellar, XRP, and many more cryptocurrencies saw about two to five percent dips. However, Trop saw a rise of over four percent.
More on the growing concerns
Volatile trading in cryptocurrency is not unusual. However, most of 2022 has been quiet for the crypto market and investors. The cryptocurrency’s 90-day correlation coefficient and tech gauge stand above 0.67. A coefficient of 1 means that assets are moving in lockstep. However, a value of -1 indicates a movement in the opposite direction. On the other hand, central banks around the world are raising interest rates to tackle the rising prices. The US Federal Reserve increased its key lending rate by 0.5 percentage points. This is its biggest hike in over two decades. The move is triggering concerns among investors that the high cost of borrowing and inflation will bring up an impact on global economic growth. Additionally, the war in Ukraine can further impact the economy.