The cryptocurrency market lost nearly $130 billion in value over the last 24 hours as major digital coins continue their extended sell-off, multiple sources reported.
Bitcoin dropped 4.81% to $33,693.63 over the last 24 hours while Ethereum slid 9.41% to $2,206.22, according to Coinbase. Both assets fell to their lowest level since July 2021, and each has lost roughly 50% of its highest value.
Cryptocurrencies have trended similarly to stocks, which have seen a sell-off since the start of 2022. Investors have dumped their assets, especially technology stocks, in preparation for tighter monetary policies from the Federal Reserve, including interest rate hikes and halting of the central bank’s asset purchasing stimulus program.
“Looking forward, our most immediate concern is how equities markets respond to this week’s Fed meeting, especially after having just endured their worst week since the global onset of Covid,” Valkyrie Funds chief executive Leah Wald told CNBC.
U.S. stocks fell Monday following the S&P 500’s worst week since March 2020, CNBC reported. The Dow Jones Industrial Average slipped nearly 700 points, or 2.1%, Monday for the seventh straight day.
The S&P 500 fell 2.4% early Monday, bringing the benchmark down 10% from its intraday high, CNBC reported. Tech-heavy index Nasdaq dropped 14% in January, and it is on pace for its worst month since October 2008, when it slid 17.7%.