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