Bitcoin continues to slide in value. Following what appears to be the greatest cryptocurrency boom in 2021, the largest cryptocurrency is now beginning to fall in market price five months later in 2022.
The price of Bitcoin has continued to fall following a broader stock sell-off in the United States last week that threw the cryptocurrency market into a panic and caused the cryptocurrency to tumble by approximately 10%.
As reported by CNBC, the world's most valuable digital currency in terms of market capitalization, was down 5% to $32,860.91 at roughly 7:12 a.m. ET on May 8.
Bitcoin fell to a new intraday low of $32,650.02, marking the cryptocurrency's lowest level since July 2021. Since the beginning of the year, the virtual currency has been trading in a confined range as it strives to regain the levels it reached in late 2021.
On the other hand, the current Bitcoin price has already dropped by more than half from its all-time high of $68,990.90 in November 2021, when it peaked.
Bitcoin Price Crash
As of writing, Bitcoin's price is at $32,830, which has gone down by a 44.83% price decrease in the last 24 hours, as per CoinDesk.
Bitcoin's price has dropped about 5% in the previous 24 hours to just under $33,000, following a downward trend that began at the end of last week and continued through the weekend to reach this level.
In response to the Federal Reserve's announcement that it would battle inflation without raising interest rates, bitcoin temporarily rose beyond $40,000 on May 4, but those gains were immediately wiped out. Since then, the price has continued to decline.
According to Next Advisor and Time, interest rates have risen, but cryptocurrency markets have plummeted. As far as Bitcoin is concerned, it appears that the market will be touching the $35,000 price range soon.
Bitcoin has a total market capitalization of approximately $640 billion. This accounts for around one-third of the cryptocurrency sector.
However, despite the fact that the cryptocurrency market has been relatively calm for much of the year 2022, volatility in digital asset trading has not been all that rare in past years.
Individual investors controlled the cryptocurrency trading market for many years, but in recent years, professional investors, such as hedge funds and money managers, have entered the market in large numbers to compete.
As more traditional investors become involved in the trading of digital assets, the movements of cryptocurrencies have been more closely tied to those of global stock markets.
Cryptocurrency Volatility
The last time Bitcoin was trapped below $40,000 was in early March, when it soared in price by 10% to over $42,000 as a result of President Joe Biden's signing of a comprehensive executive order on cryptocurrency regulation.
According to Next Advisor, Biden's executive order directed government agencies to develop a plan for regulating cryptocurrency, as well as to investigate the possibility of issuing a government-issued digital currency as a central bank. By the end of March, the price of Bitcoin was hovering around $45,000, and it had even reached the $48,000 level on a few occasions.
Increased market volatility can be ascribed to a number of factors, including rising inflation, geopolitical events, and concerns about the Federal Reserve tightening monetary policy.
The Federal Reserve raised interest rates for the first time in 22 years on Wednesday, signaling that additional rate rises are acceptable and that the balance sheet runoff will begin in June.
