Bitcoin took another major dive on Friday morning as the cryptocurrency continues to fall alongside the stock market.
The largest cryptocurrency by market value dropped to $35,694 on Friday, down 9.1% in the last 24 hours, according to CoinGecko. It’s currently trading at around $35,897.
Other cryptocurrencies are also taking major hits.
Ether, the second largest, is also down about 8.3% over the last day, now trading at $2,687.
The overall cryptocurrency market is down 8.1% in 24 hours.
The nosedive comes after the Federal Reserve indicated it would raise interest rates by half a percentage point on Thursday, which sparked a stock market selloff. It shows that cryptocurrencies are increasingly moving in sync with tech stocks.
“This week markets took a sudden a U-turn following the Federal Reserve’s meeting,” Lucas Outumuro, head of research at IntoTheBlock, wrote in its newsletter on Friday. “Market participants welcomed Jerome Powell’s statement of no 75-basis points on Wednesday, rising strongly, just to end at lower levels on Thursday. Stock market indices and crypto moved in sync, yet again.”
The Dow Jones Industrial Average had its worst day since 2020 on Thursday, and lost more than 1,000 points. The Nasdaq Composite fell about 5%. Futures are in the red.
“Overall, bearish sentiment continues to prevail as the Fed looks to slow down inflation at all costs. This has led to stronger correlations between stocks and crypto over the past six months,” Outumuro wrote.
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