Bitcoin fell sharply after the sale of major US stock indices. Bitcoin is closely linked to the price movement of the Nasdaq index.
Luke McGregor Bloomberg | Getty Images
Bitcoin crashed on Thursday as a big sell-off in the United States frightened the cryptocurrency market.
Bitcoin fell about 9.6 percent to $ 35,743.22 on Friday morning, according to Coin Metrics.
Other cryptocurrencies, including ether and XRP, also fell sharply.
Cryptocurrency sales were triggered by a painful day on Wall Street, when the Dow Jones Industrial Average lost more than 1,000 points on Thursday, marking its biggest drop in a single day since 2020.
The tech Nasdaq fell nearly 5%. Bitcoin remains linked to stock markets, with cryptocurrency falling or rising in tandem with stocks.
“Overall, global markets have been intimidated by fears of growth, as we see. The Dow saw its biggest decline since 2020, and all related risky assets followed suit, including crypto, “Vijay Ayyar, vice president of corporate development and international cryptocurrency Luno, told CNBC.
On Wednesday, the US Federal Reserve raised its key interest rate by half a percentage point. Further interest rate hikes and tightening monetary policy have raised fears that the US economy could fall into recession.
Aiyar said bitcoin “lost a key level” when it fell below $ 37,500, which could mean “much lower movement” over the next few days. He said bitcoin could test the lowest level of $ 30,000 soon, and if the price falls below that, it could fall to $ 25,000.
“However, we can see some relief in the meantime, but nothing to indicate a change in sentiment,” unless Bitcoin fails to find market support above $ 42,000, Aiyar added.