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.

learn more about Madeline Garfinkle

By Madeline Garfinkle

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

Entrepreneur Staff

Editorial Assistant

Madeline Garfinkle is an Editorial Assistant at She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Related Topics

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Starting a Business

Selling Your Business? Do These 6 Things Right Now.

If you want the maximum price you need to make these moves before you do anything else.

Business News

Carnival Cruise Wants Passengers to Have Fun in the Sun — But Do This, and You'll Get Burned With a New $500 Fee

The cruise line's updated contract follows a spate of unruly guest behavior across the tourism industry.

Celebrity Entrepreneurs

'I Dreaded Falling in Love.' Rupert Murdoch Is Getting Hitched for the Fifth Time.

The 92-year-old media tycoon announces he will wed former San Francisco police chaplain Ann Lesley Smith.


5 Practical Strategies Founders Can Use to Improve Their Mental Health

Supporting your mental health is one of the most important investments you can make in your company. If you're unsure where to begin, choose one of these strategies and focus on implementing it in your everyday life.

Business News

What Does the Banking Crisis Mean for Startups and Small Business Owners?

Author, CPA and business owner Gene Marks break down everything entrepreneurs need to know about the impact of the SVB collapse.