Bitcoin Falls to Less than Half Its All-Time High

Bitcoin fell 10% on Monday after plunging again over the weekend. The industry standard cryptocurreny’s price has now dropped almost 20% in the past week. 

Now sitting at a price just below $31,000, Bitcoin is more than 50% below its record high of near $69,000 from late last year.

Other cryptos have suffered, too. Ethereum, Binance and Solana are all down about 15% in the past week. 

Analysts are saying that cryptos are proving to be just as risky as stocks and susceptible to the same concerns that are dragging down major bourses like the Dow and the S&P 500.

Cryptocurrencies are not immune to growing inflation fears, worries about big interest rate hikes, and a possible global recession. In response, investors are flocking to their favorite asset in times of market instability – long-term bonds. The 10-year US Treasury bond yield is now hovering just above 3.1%, having more than doubled this year. 

What does this mean for me? 

Cryptocurrencies are increasingly moving in sync with tech stocks, with investors treating both as risk assets and often moving to safer corners of the market during periods of market volatility. However, it’s not all bad news. More hedge funds and other big institutions are starting to invest in crypto, and some global central banks are beginning to embrace its inevitability.

For the crypto investor, this volatility is a microcosm of what it means to invest in these assets. If you are investing in the asset for the long term, there is every chance the asset class will rally.