The plunge in the cryptocurrency market continues, with another $130 billion disappearing in the last 24 hours.
The moves in cryptocurrency markets are correlated with the selling seen in higher-risk assets such as tech stocks as investors prepare for tighter monetary policy from the Federal Reserve and higher interest rates.
Bitcoin fell about 6% to $33,352.50 according to CoinDesk data, the lowest level since July 24, 2021. Bitcoin has lost about 51% of its value since its record high in November.
Ether is down 12% to $2,218.37, its lowest level since late July, according to CoinDesk data. Ether is about 53% lower than its all-time high in November 2021.
Investors are also grappling with higher inflation. Bitcoin proponents often suggest that digital currency is a hedge against inflation, but that theory hasn’t held up so far.
Meanwhile, investors are also assessing the impact of further regulation on the cryptocurrency market. Last week, Russia’s central bank proposed a ban on the use and mining of cryptocurrencies .