Cryptocurrencies continued their slide over the weekend, with Bitcoin (BTC) now having lost more than half its value since hitting an all-time high last November.
Bitcoin, the world’s biggest cryptocurrency by market value, is now trading at $33,300 U.S. The digital coin hit a record high of $69,000 U.S. in mid-November.
Meantime, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, sank nearly 10% over the weekend to trade around $2,400 U.S.
Cryptocurrencies and traditional stocks have been falling in tandem this month, with investors concerned about how anticipated U.S. Federal Reserve interest-rate increases will affect markets.
A common investment case for Bitcoin is that it serves as a hedge against rising inflation as a result of government stimulus, but analysts are saying the risk is that a more hawkish central bank may take the wind out of the cryptocurrency market’s sails.
There’s also concern U.S. regulators will further crackdown on digital assets.
Russia’s central bank proposed banning the mining of cryptocurrencies last week. Officials argued it poses threats to financial stability, citizens’ wellbeing, and its monetary policy sovereignty.
