The global cryptocurrency market remains in fever. After Bitcoin unexpectedly fell below $37,000 last week, investors’ troubles were not over. The most valuable cryptocurrency fell to $33,438.03 per coin by the end of Sunday, according to Coin Metrics.
For many investors, such indicators are disastrous – now the price of Bitcoin is about 50% below the peak price of November 2021, when the cryptocurrency was worth $67,802.30.
The stock fell sharply after the Dow Jones Industrial Average shed more than 1,000 points on Thursday and the Nasdaq fell 5%. This is the highest daily decline since 2020. Indices also fell again on Friday.
At the same time, the Federal Reserve System (FRS) decided on Wednesday to raise interest rates by 0.5%. Such a significant one-time increase in the key interest rate was last recorded around 20 years ago. As a result of the Fed’s decision, bitcoin price temporarily spiked above $40,000 per unit but then started falling.
According to CoinGecko.com, the market cap of the cryptocurrency as of Sunday was $1.68 trillion and the total volume of cryptocurrency trading was $119 billion per day.