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Bitcoin plummets alongside stocks following the Federal Reserve decision

May 5, 2022, 4:09 PM UTC

Bitcoin is tumbling after the Federal Reserve decision to increase interest rates by half a percentage point.

The largest cryptocurrency by market value is currently trading at around $36,756, down 4% since 11 a.m. on Thursday morning, and 6% in the last 24 hours, according to CoinGecko. May is usually a good month for Bitcoin, the largest cryptocurrency by market value, but it’s falling alongside the stock market after the central bank decision.

On Wednesday, Bitcoin was trading just under $40,000.

Bitcoin wasn’t the only one to take a hit following the Fed’s announcement. Gains from Wednesday’s stock rally were erased on Thursday as well. The Dow Jones industrial average lost 1,012 points, down 3.0%; the S&P 500 fell 3.5%; and the Nasdaq composite fell 4.7%.

Though May is typically a good month for Bitcoin, analysts told Fortune they feared that the Fed decision this week would negatively impact the cryptocurrency, especially as its price movement has correlated with the stock market recently. 

“Frankly, until the market starts looking past the impact that [quantitative tightening] and raising rates will have, I find it difficult for Bitcoin to establish a broader uptrend,” Lucas Outumuro, head of research at IntoTheBlock, a crypto market analysis firm, recently told Fortune.

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