Alec Monopoly paints bitcoin on a mural at the North American Bitcoin Conference held at the James L Knight Center on January 18, 2022 in Miami, Florida.
Joe Raedle | beautiful pictures
The cryptocurrency continued its steep slide on Saturday, with bitcoin losing almost half its value since hitting a November high.
Bitcoin, the world’s most valuable cryptocurrency by market value, fell about 8% on Saturday to trade just above $35,000. The coin hit a record high of $69,000 in November.
Meanwhile, ether, the second-largest cryptocurrency by market capitalization, is down nearly 10% to trade around $2,400.
Losses come after a Thursday discount on the stock market. Cryptocurrencies and traditional stocks have fallen in tandem this month, with investors concerned about how anticipation of a Federal Reserve rate hike will affect the market.
A common investment case for bitcoin is that it acts as a hedge against rising inflation due to government stimulus, but Analysts are saying risk It’s a a more hawkish Fed could blow the sails of the crypto market.
There is also concern that US regulators will continue to crack down on digital currencies.
Russia’s central bank proposed banning the use and mining of cryptocurrencies earlier in the week. Officials argue that it poses threats to its financial stability, public welfare and monetary policy sovereignty. The US government has also tight control on certain aspects of the market.
— Weizhen Tan of CNBC contributed to this report.
