Bitcoin at about halfway through its peak as crypto markets crash

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Photo Illustration by Pavlo Gonchar/SOPA Images/Getty Images

Bitcoin continued its slide on Monday morning, losing about half of its value since its peak in November. The cryptocurrency fell below $34,000, down about 10% since Friday.

It’s not alone. Bitcoin is one of many digital coins to drop over the weekend, with the cryptocurrency market as a whole losing an estimated $130 billion in the past 24 hours, according to CNBC. Ether, which held around $4,000 for much of December, fell below $2,100 on Monday.

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The market drop comes as the US Federal Reserve signaled that it may soon tighten monetary policy and raise interest rates. As a result, there has been a broad sell-off in the market for cryptocurrencies and other riskier assets, including shares of tech companies, according to the Wall Street Journal.

Last week, the Federal Reserve also released a long-awaited report that examines the potential benefits and risks of a central bank digital currency, or CBDC. Although the Fed has not taken a position on these digital dollars – which, unlike most cryptocurrencies, are issued and regulated by a country’s financial authority – the report reflects interest and concern. increasing government concerns regarding digital assets as cryptocurrencies grow in popularity.

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