Hot topics close

Bitcoin Price Falls 54% From Its High

The world’s largest cryptocurrency fell to $31,000 on Monday. In November, it hit its record high of $67,802.
With more professional investors trading bitcoin, the market has increasingly moved in tandem with traditional markets. Photo: MARCO BELLO/REUTERS
Jenna Telesca
Updated May 9, 2022 6:57 pm ET

The cryptocurrency market has continued its slide from last week, mirroring the fall of the broader stock market.

The world’s largest cryptocurrency, bitcoin, fell to $31,075.70 on Monday evening, a 10% drop from Sunday at 5 p.m. EDT, according to prices from CoinDesk. Bitcoin’s price has fallen 54% from its record high of $67,802 in November.

It is on track for the worst five-day stretch since the five days ended March 16, 2020, when it fell almost 38%.

Ethereum, the second-largest cryptocurrency, fell Monday to $2,286.10, almost 10% below the price Sunday evening.

Bitcoin and cryptocurrencies more widely are known for their violent price swings. Individual investors controlled the market for years but institutional investors, such as hedge funds and money managers, have started to dominate it.

With more professional investors trading crypto, the market has increasingly moved in tandem with traditional markets. Many institutional investors that buy cryptocurrencies treat them as risk assets, similar to technology stocks. Investors tend to retreat to safer corners of the market during turbulent bouts.

The stock market dropped last week the day after the Federal Reserve announced a rate increase of a half point, the biggest since 2000, to battle inflation. Fed Chairman Jerome Powell said there could be additional increases during the summer. The central bank is also unwinding some of its $9 trillion asset portfolio.

The tech-heavy Nasdaq Composite hit a new 52-week low on Monday, falling 26% year to date.

Crypto prices have been stagnant for much of 2022 as investors brace for rising interest rates. The crypto market has been active over the past 24 hours, with almost $155 billion in market volume in that period, according to CoinMarketCap. The global crypto market fell to $1.4 trillion.

Cryptocurrency companies have been working to become household names. Flush with venture-capital investment, crypto platforms have been spending more cash on lobbying efforts and marketing directly to consumers.

Related Video
The U.S. quickly became the world leader in bitcoin mining after China cracked down on crypto last year. WSJ’s Shelby Holliday takes a look at what the global shift has meant for the bitcoin network, the energy industry and the environment. Photo: Mark Felix/Agence France-Presse/Getty Images
.jTCSZC{margin:24px 0 0;font:22px/24px 'Escrow Condensed';font-weight:600;}/*!sc*/ .edition-japan .sc-bdvvtL{font:700 19px/21px 'Hiragino Sans',meiryo,Arial;}/*!sc*/ data-styled.g32[id="sc-bdvvtL"]{content:"jTCSZC,"}/*!sc*/ .iNBRiX{font-size:16px !important;line-height:24px !important;font-weight:400;font-family:Exchange;margin:0;-webkit-letter-spacing:0px;-moz-letter-spacing:0px;-ms-letter-spacing:0px;letter-spacing:0px;color:#555555;opacity:1;}/*!sc*/ .edition-japan .sc-gsDKAQ{font-family:'Hiragino Sans',meiryo,Arial;}/*!sc*/ data-styled.g33[id="sc-gsDKAQ"]{content:"iNBRiX,"}/*!sc*/ .gsOvTr{-webkit-text-decoration:none !important;text-decoration:none !important;display:block;}/*!sc*/ .gsOvTr:hover *{opacity:0.7;-webkit-text-decoration:none;text-decoration:none;}/*!sc*/ .gsOvTr:focus{outline:3px solid #0080c3;}/*!sc*/ data-styled.g36[id="sc-eCImPb"]{content:"gsOvTr,"}/*!sc*/ .kHpTAP{object-fit:cover;margin-bottom:16px;}/*!sc*/ data-styled.g37[id="sc-jRQBWg"]{content:"kHpTAP,"}/*!sc*/ .bUwoCe{display:block;font:bold 18px/1 'Escrow Condensed';-webkit-letter-spacing:0px;-moz-letter-spacing:0px;-ms-letter-spacing:0px;letter-spacing:0px;color:#222222;}/*!sc*/ .edition-japan .sc-iCfMLu{font:400 16px/20px 'Hiragino Sans',meiryo,Arial;}/*!sc*/ data-styled.g39[id="sc-iCfMLu"]{content:"bUwoCe,"}/*!sc*/ .jImJyu{box-sizing:border-box;border:solid #cccccc;border-width:1px 0;background-color:#ffffff;}/*!sc*/ .jImJyu img{max-width:100%;}/*!sc*/ data-styled.g40[id="sc-furwcr"]{content:"jImJyu,"}/*!sc*/ .bjMlck{margin:0 auto;}/*!sc*/ .bjMlck .series-nav__header-object{margin-top:16px;line-height:0;}/*!sc*/ data-styled.g41[id="sc-pVTFL"]{content:"bjMlck,"}/*!sc*/
@media(max-width: 619px) { .series-nav__4col-only { display: none !important; } } .media-object.wrap .series-nav__4col-only { display: none !important; } @media(min-width: 620px) { .series-nav__2col-only { display: none !important; } } .media-object.wrap .series-nav__2col-only { display: initial !important; } .series-nav-inset__links-container { display: grid; grid-template-columns: 1fr 1fr 1fr 1fr; grid-gap: 32px 16px; margin: 32px 0; } @media(max-width: 619px) { .series-nav-inset__links-container { grid-template-columns: 1fr 1fr; } } .media-object.wrap .series-nav-inset__links-container { grid-template-columns: 1fr 1fr; } .series-nav__inset-container-inner { margin: 0 auto; }
Cryptocurrency Markets

Related coverage, selected by the editors

Bitcoin: What to Know Before InvestingBitcoin: What to Know Before Investing
Bitcoin in Your 401(K): Is That a Good Idea?Bitcoin in Your 401(K): Is That a Good Idea?
Digital Dollar: What It Is and Why Create OneDigital Dollar: What It Is and Why Create One
A Tax Guide for Cryptocurrency TradersA Tax Guide for Cryptocurrency Traders
Crypto Fees: What to Know About the Hidden CostsCrypto Fees: What to Know About the Hidden Costs
Dogecoin: How to Say It and Why It’s No Longer a JokeDogecoin: How to Say It and Why It’s No Longer a Joke
You Can Get Crypto Right and Still Play It WrongYou Can Get Crypto Right and Still Play It Wrong
A Bitcoin ETF Is Here. What Does That Mean for Investors?A Bitcoin ETF Is Here. What Does That Mean for Investors?

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the May 10, 2022, print edition as 'Bitcoin Price Plummets 55% From Its High.'

Similar shots