Bitcoin fell below a crucial support level after a massive stock sell-off in the United States spooked the cryptocurrency market, sending bitcoin down roughly 10%.
Bitcoin dipped beneath $35,000, having dropped over 4% in the previous 24 hours and about 9% in the previous seven days. The largest cryptocurrency’s market worth has dropped to $658 billion. That value was more than $900 billion on March 28, 2022.
The dip comes after a turbulent week for stocks, which witnessed huge swings up or down in the aftermath of the Federal Reserve’s widely anticipated decision to raise interest rates by a half-point last week. It also comes at a time when the movements of equities and crypto assets have become increasingly correlated.
Moreover, a week ago, institutional investors began withdrawing assets from Bitcoin exchange-traded funds. Bitcoin outflows totaled $133 million in the previous week, the most since June 2021.
The cryptocurrency has already dropped by half its peak value of $67,802.30 in November 2021.
According to CoinGecko.com statistics, the worldwide cryptocurrency market worth was $1.68 trillion on Sunday, while cryptocurrency trading activity on the previous day was $119 billion.
Other leading digital currencies have continued to fall, with Ethereum down 13.3 percent in the last 24 hours and Binance Coin down 15.2 percent.
Ethereum, the second-largest currency by market value, was down over 5% in the last day and nearly 8% in the last seven days, trading at around $2,549 USD.
Other significant coins were also lagging. ApeCoin (APE) was down 8% in 24 hours (and 32% in seven days) to $11.69, Terra’s LUNA was down more than 15% in 24 hours to $61.68, and Avalanche (AVAX) was down more than 7% to $52.38 on the day.
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