Crypto Collapse

Prices of major cryptocurrencies plunge over the weekend

Cryptocurrency prices were hammered over the weekend following last week’s big sell-off in U.S. stocks. 

The price of Bitcoin fell about 4% between Friday night and Sunday to below $33,000, which is about half of its November high. Bitcoin's value is now down 18% over the last month. It peaked at a price of $69,000 last November. 

The price of Ether, which is the second largest cryptocurrency by market capitalization, fell below $2,400, or down more than 5% from Friday.

It was an active weekend of trading in the crypto market, with $112 billion in market volume, according to data from CoinMarketCap.

The crypto market has become increasingly correlated with the stock market as large institutional investors like hedge funds have gotten into the market. With the Nasdaq down 21% this year, the price of Bitcoin is down 22%.

"While Bitcoin, in particular, used to be thought of as a non-correlated asset relative to the stock market, the past six months have proven that retail and institutional investors are treating it much like any other risk asset that is not immune to interest rate hikes and inflation," said Caleb Silver, editor-in-chief of Investopedia. "And, absent fundamentals to support its price, it can become even more volatile than stocks and commodities when sentiment is weak."

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