Bitcoin (BTC) fell below $30,000 on Tuesday as both traditional financial markets and cryptocurrencies suffered from a sell-off caused by the U.S. Federal Reserve’s aggressive monetary tightening as well as recession fears.
The latest decline left bitcoin at a 10-month low and its lowest price this year.
This month the Federal Reserve raised its benchmark interest rate by 50 basis points (0.5 percentage points) and is expected to do so again at its next meeting in June.
The last time BTC traded below $30,000 was in July 2021, when the digital asset traded as low as $29,839.80. Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, previously told CNBC the digital currency would need to maintain a key psychological price level of $33,000 to stave off further deterioration of technical sentiment.
The price drop comes amid a broader, multi-day sell-off that has ensnared much of the crypto market and equities.
The crypto market, which trades 24-hours a day, is down nearly 10% in the last 24 hours, according to CoinMarketCap data. Meanwhile, all three major stock indexes closed Monday lower, with the S&P 500 falling to its lowest level in more than a year.
Stocks have been on a steady decline since Thursday when the Dow Jones Industrial Average and Nasdaq Composite each posted their worst single-day drops since 2020.