Bitcoin is a volatile asset and has been known to fluctuate more than 10% up or down in a single day.
Jakub Pozhitsky | Nurfoto | Getty Images
Bitcoin continued to fall after a larger U.S. stock sell-off last week sent the cryptocurrency market into a frenzy and sent Bitcoin down about 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. Bitcoin has been trading in a tight range this year as it attempts to reclaim its late 2021 highs.
The drop comes after the Dow Jones Industrial Average lost more than 1,000 points on Thursday and the Nasdaq fell 5%. Those losses were the worst one-day drop since 2020. On Friday, the Dow and Nasdaq fell again.
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 larger 75 basis point rate hike was not being considered. But by Thursday, investors had wiped out the gains from the Fed’s rally.
On Sunday, the capitalization of the global cryptocurrency market amounted to $1.68 trillion. according to from CoinGecko.com, and the cryptocurrency trading volume for the last day was $119 billion.
—CNBC Tanaya Machil provided reporting