The financial market continues its struggle as the largest crypto in the world touches the 34,000 dollar mark. Bitcoin has fallen over 50% in market value after reaching its peak in November 2021.
Its recent dip came after the stock markets faced a severe fall in recent days. The week started with some Asian markets facing a dip. The Japanese Nikkei index went down 2%, and the pattern was followed in nearby regions too.
Currently accounting for a third of the overall crypto market, Bitcoin stands at a whopping 636 billion dollars. The figure shows its prominence and how its bad market performance affects other cryptocurrencies.
The second-largest crypto, Ethereum, faces continuous falls, as it recently lost 10% in a week. The year has not been ideal for the crypto market; however, this is not the first time investors have seen this.
Over the past few years, the crypto market has gained the attention of professional traders and institutional investors too. Although most of them treat crypto as risk assets, the fact remains that cryptocurrencies are garnering mainstream adoption.
Nonetheless, selling risky assets, like crypto, during market fluctuations remains. That is why the crypto market has constantly suffered for several months now. Recently, multiple central banks tried to address the issue of the rising price.
The Fed surged its lending rate by half a percentage point, and this development had not been seen in the past 20 years. Thus, several investors grew even more varied after the announcement.
The lingering concerns of the war in Ukraine on the global economy are also hurting the market. Still, nations like El Salvador are showing their support for crypto. Even after the IMF (International Monetary Fund) urged it to reverse the decision, the nation even allowed citizens to use crypto in every transaction.