Bitcoin erases 50% of its gains since November 2021
It is down more than 50% from its peak price of $68,990.90
Bitcoin hit its lowest value since July 2021 reaching $32,271 at 11:51 AM in New York.
The 10% drop was triggered by the broad stock sell-off in the US markets after the Federal Reserve tightened the monetary policy. The second-largest cryptocurrency, Ether fell to $2377.06 at the same time, losing around 5.6% in the past 24 hours.
Bitcoin lost the critical support level of $40,000 last week and did not hold above subsequent support levels at $38,000 and $35,800. It could drop to as low as $31,500 if current levels fail to hold, reported CoinDesk.
It is now down more than 50% from its peak price of $68,990.90 in November 2021.
Falling from the peak
The stock market rallied after the Fed Chair Jerome Powell said a larger rate hike of 75 basis points isn’t being considered, but by Thursday, investors had erased the Fed rally’s gains.
The Dow lost more than 1,000 points on Thursday and the Nasdaq plunged by 5%, marking the worst single-day drops since 2020 for both the indices.
The global market cap for cryptocurrencies was at $1.68 trillion on Sunday, according to data from CoinGecko.com, and cryptocurrency trading volume in the last day was at $119 billion.
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