The cryptocurrency market continued its slide from last week, mirroring the broader market’s decline.
Bitcoin, the world’s largest cryptocurrency, fell to $31,075.70 late Monday, down 10 percent from 5 p.m. Sunday. EDT, according to CoinDesk prices. Bitcoin’s price is down 54% from its all-time high of $67,802 set in November.
It was its worst five-day run since the five ended March 16, 2020, when it fell nearly 38%.
Ethereum, the second-largest cryptocurrency, fell to $2,286.10 on Monday, nearly 10 percent below its price on Sunday night.
Bitcoin and cryptocurrencies are generally known for their wild price swings. Individual investors have dominated the market for years, but institutional investors such as hedge funds and fund managers have begun to dominate.
As more professional investors trade cryptocurrencies, the market is developing more and more parallel to the traditional market. Many institutional investors who buy cryptocurrencies see them as risky assets, much like tech stocks. During turbulent times, investors tend to retreat to safer corners of the market.
Stocks fell last week, a day after the Fed announced it would raise interest rates by half a percentage point, the largest rate since 2000, to fight inflation. Federal Reserve Chairman Jerome Powell said more rate hikes are likely in the summer. The central bank is also shrinking part of its $9 trillion portfolio.
The tech-heavy Nasdaq Composite hit a new 52-week low on Monday and is down 26% year-to-date.
Cryptocurrency prices are flat for most of 2022 as investors brace for rising interest rates. According to data from CoinMarketCap, the crypto market has been active over the past 24 hours, with a market volume of nearly $155 billion during this period. The global cryptocurrency market fell to $1.4 trillion.
Cryptocurrency companies have struggled to become household names. With rich venture capital investments, crypto platforms are investing more in lobbying and direct-to-consumer marketing.
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