Bitcoin price drops below $ $35,675.82 in conjunction with technology sales

Wall Street sources suggest that cryptocurrency prices should compete with the central bank.

This is becoming a very common occurrence: when stocks fall, so be it Bitcoin.

Bitcoin, the largest in the world Cryptocurrency According to CoinDesk, the market value fell below $ 37,000 on Friday to its lowest dollar value since August 2021. It was down 11% from Thursday and stood at $ $35,675.82, down 46% from its record in November 2021.

The drop came fast in the afternoon fainting stock market Thursday.

Cryptocurrencies and stocks have been falling together since the beginning of this year, and how the Federal Reserve’s interest rate hike is fluctuating in the markets in response to investor expectations.

“Cryptocurrencies are no longer an isolated risk asset and respond to changes in global policy,” said Clara Medali, director of research at Kaiko, a cryptocurrency market data provider. “It’s not surprising that both become very volatile as the cash pipes are turned off.”

A criterion for how Bitcoin is tied to markets: According to Kaiko, cryptocurrency has been close to its highest level of correlation with the stock market since September 2020. That means Bitcoin will fall as the stock market falls.

That lateral movement is volatile over time as Bitcoin and other cryptocurrencies move according to their own stimulus.

The widespread adoption of cryptocurrencies among investors may have made them more sensitive to being sold on stocks.

The fall in the dollar value of Bitcoin on Friday coincided with a 20% fall in Netflix shares, which destroyed more than $ 40 billion in market capitalization. The streaming company expects to add a much smaller number of subscribers this quarter than it did a year ago.

Some analysts believe that the sale of popular technology stocks will prompt investors to remove positions in their crypto holdings, control overall losses, meet margin calls, and ask brokers to register cash to cover possible losses on trades made on borrowed money.