The world’s most valuable cryptocurrency fell 10% on Monday, after plummeting over the weekend. Thus, bitcoin prices have dropped almost 20% in the last week. At a price of just under $29,000, bitcoin is more than 50% off its all-time high of nearly $69,000 from late last year, and at its lowest point since July 2021.
Other cryptocurrencies, sometimes called altcoins, are also facing heavy blows. Ethereum, binance, solana, and cardano are all down around 15% in the past week, while Elon Musk’s beloved dogecoin is down 10%.
Cryptocurrencies are proving to be just as risky as stocks, and moreover, susceptible to the same concerns that are dragging the Dow, S&P 500, and Nasdaq lower.
“Volatile digital asset trading has not been that unusual in previous years,” said Michael Kamerman, CEO of trading platform Skilling. “Cryptocurrencies are increasingly moving in sync with tech stocks as investors treat them as risky assets and often retreat to safer parts of the market during bouts of volatility,” he added.
Kamerman said that he remains bullish on bitcoin in the long term. More hedge funds and other large institutions have started investing in cryptocurrencies, and some global central banks are also starting to adopt them.
However, he cautioned that “bitcoin is not immune to the global inflation risk that extends to most other asset classes. Therefore, we should expect the downward trend to continue.”
