The world’s largest cryptocurrency, bitcoin, fell to $31,682 on Monday, an almost 12% drop from Friday evening, according to prices from CoinDesk. This moves bitcoin to less than half of its all-time-high of $67,802 in November.
Ethereum, the second-largest cryptocurrency, fell Monday to $2,349.73, a 13% decline from Friday evening.
Bitcoin and cryptocurrencies more widely are known for their violent price swings. Individual investors controlled the market for years but institutional investors, such as hedge funds and money managers, have started to dominate it.
With more professional investors trading crypto, the market has increasingly moved in tandem with traditional markets. Many institutional investors that buy cryptocurrencies treat them as risk assets, similar to tech stocks. Investors tend to retreat to safer corners of the market during turbulent bouts.
The stock market dropped last week the day after the Federal Reserve announced a rate increase of a half point, the biggest since 2000, to battle inflation. Fed Chairman
said there could be additional increases in the summer. The central bank is also unwinding some of its $9 trillion asset portfolio.
The tech-heavy Nasdaq Composite has fallen by almost 25% year to date.
Crypto prices have been stagnant for much of 2022 as investors started bracing for rising interest rates. The crypto market has been active over the last 24 hours, with almost $120 billion in market volume in a 24-hour period, according to CoinMarketCap. The global crypto market is now $1.46 trillion.