Bitcoin price drops 54% from all-time high

It’s on track to perform its worst five-day period since the five days ended on March 16, 2020, when it was down nearly 38%.

Ethereum, the second largest cryptocurrency, fell on Monday to $2,286.10, nearly 10% below the price on Sunday evening.

Bitcoin and cryptocurrencies are widely known for their violent price swings. Individual investors have dominated the market for years but institutional investors, such as hedge funds and money managers, I started controlling him.

With more and more professional investors in cryptocurrency trading, the market is increasingly moving in tandem with the traditional markets. Many institutional investors who buy cryptocurrencies treat them as risk assets, similar to technology stocks. Investors Tends to retreat to safer corners From the market during turbulent fits.

The stock market fell last week the day after the Fed’s announcement Half a point increment, the largest since 2000, to fight inflation. Fed Chairman Jerome Powell said there may be additional increases over the summer. The central bank is also unwinding some of its $9 trillion asset portfolio.

The tech-heavy Nasdaq Composite hit a 52-week low on Monday, down 26% year-to-date.

Cryptocurrency prices remained stagnant throughout most of 2022 as investors braced for higher interest rates. The crypto market has been active over the past 24 hours, with nearly $155 billion in market size in that period, according to CoinMarketCap. The global crypto market has fallen to $1.4 trillion.

Cryptocurrency companies are becoming household names. Cryptocurrency platforms have been full of venture capital investments Spend more money on lobbying efforts And Marketing direct to consumers.