• Sat. May 21st, 2022

Bitcoin drops below $35,000 over the weekend, extending losses from Friday

ByHazel R. Lang

May 8, 2022

Bitcoin is a volatile asset, and has been known to swing more than 10% up or down in a single day.

Jakub Porzycki | Nurphoto | Getty Images

Bitcoin continued to fall after a massive sell-off in stocks in the United States last week sent the cryptocurrency market into a frenzy and caused bitcoin to fall around 10%.

Bitcoin, the world’s largest digital currency by market value, fell more than 3% to $34,582.36 on Sunday, according to data from Coin Metrics. This year, Bitcoin has traded in a tight range as it attempts to regain its late 2021 highs.

The decline comes after the blue-chip Dow Jones Industrial Average lost more than 1,000 points on Thursday and the Nasdaq plunged 5%. The losses marked the worst single-day declines since 2020. The Dow and Nasdaq fell again on Friday.

Meanwhile, the Federal Reserve on Wednesday raised its benchmark interest rate by half a percentage point in response to inflationary pressures.

The stock market rallied after Fed Chairman Jerome Powell said a bigger rate hike of 75 basis points was not on the cards. But by Thursday, investors had erased gains from the Fed’s rally.

The global cryptocurrency market capitalization was $1.68 trillion on Sunday, according to data from CoinGecko.com, and cryptocurrency trading volume over the past day was $119 billion.

CNBC Tanaya Macheel contributed reports

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