Rough Monday For Bitcoin: 5.2% Drop in 24 Hours After its fifth consecutive day of drops, Bitcoin is down more than 50% since its peak in November.

By Madeline Garfinkle

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

As of Monday morning, Bitcoin is down to $32,940, a drop that marks a steep fall of more than 50% since its all-time high of $68,990 in November — and Bitcoin isn't the only digital currency taking a dive. Ethereum, the second-largest cryptocurrency, also fell by 5% since Friday.

The dramatic drops follow the Fed's move last week to hike interest rates by half a point to combat inflation. The largest interest rate increase in 20 years was met with slipping stocks far and wide, with European and Asian stocks also dropping on Monday. The pan-European Stoxx 600 slipped by 1.5% by late morning, and Japan's benchmark Nikkei index fell by around 2.5%.

Related: Billionaire Investor Warns U.S. Economy Could Face 'Serious Problems' If Fed Doesn't Hike Rates Within the Year

Analysts are signaling that the drops could indicate a new trend, wherein cryptocurrencies move in chorus with the market — challenging the belief that bitcoin could be used as an inflation hedge.

Still, it's hard to say if the trend will persist, as the parallel falls of both crypto and the stock market are likely a product of rising inflation, with many investors taking a "risk-off approach," selling both currencies in tandem to mitigate risk.

Unfortunately, some say the downward trend isn't over, and is likely to continue for a few days.

"Until the market starts looking past the impact that [quantitative tightening] and raising rates will have, I find it difficult for Bitcoin to establish a broader up-trend," Lucas Outumuro, head of research at IntoTheBlock, told Fortune.

Related: 4 Ways to Smartly Invest in Cryptocurrencies

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Growing a Business

The Owners of This Texas Farmers Market Took a Big Gamble. Here's How It Paid Off Bigger Than They Dreamed.

A Texas farmers market educates customers about the importance of shopping local for a healthy lifestyle and an even healthier small business community.

Business News

A Billion Dollar Startup Is Trying To Resurrect A Woolly Mammoth — And You Can Watch It Happen

Filmmakers will go behind the scenes of billion-dollar startup Colossal Biosciences, which uses genetic engineering for de-extinction projects.

Business News

Woman Allegedly Fired for 'Theft' After Eating a Sandwich That Was Leftover From a Meeting

Gabriela Rodriguez worked as a cleaner at Devonshires Solicitors in London for two years.

Business News

A 29-Year-Old CEO Quit Microsoft To Build His Startup — And Just Scored A Deal on Shark Tank

Aabesh De tapped into a niche need during the pandemic and founded Flora, a houseplant care startup.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.