Bitcoin is a volatile asset, and has been known to swing greater than 10% higher or lower in a single day.
Jakub Porzycki | Nurphoto | Getty Images
Bitcoin continued to slip after a broader stock sell-off within the U.S. last week sent the cryptocurrency market right into a frenzy and prompted bitcoin to plummet by roughly 10%.
Bitcoin, the world’s largest digital currency by market value, was down greater than 3% at $34,582.36 on Sunday, based on data from Coin Metrics. This 12 months, Bitcoin has been trading in a narrow range because it attempts to reclaim its highs of late 2021.
The cryptocurrency is now down 50% from its peak price of $67,802.30 in November 2021.
The drop comes after the blue-chip Dow Jones Industrial Average lost greater than 1,000 points on Thursday and the Nasdaq plunged by 5%. Those losses marked the worst single-day drops since 2020. The Dow and Nasdaq fell again on Friday.
Meanwhile, the Federal Reserve on Wednesday raised its benchmark rate of interest by half a percentage point because it responds to inflation pressures.
The stock market rallied after Fed chair Jerome Powell said a bigger rate hike of 75 basis points is not being considered. But by Thursday, investors had erased the Fed rally’s gains.
The worldwide cryptocurrency market cap was at $1.68 trillion on Sunday, based on data from CoinGecko.com, and cryptocurrency trading volume within the last day was at $119 billion.
—CNBC’s Tanaya Macheel contributed reporting