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Bitcoin plummets in weekend after stock rout, breaching support level to around $34,000

May 8, 2022, 4:54 PM UTC

Bitcoin continues to fall, extending its losses from the past week.

The largest cryptocurrency by market value dropped 4% in the last 24 hours, according to CoinGecko, breaching a key support level and hitting a daily low of $34,406. 

It’s currently trading at around $34,519, down 9% in the last seven days and down 40% year to date.

Ether, the second-largest, is also in the red, down 6% in the last day and down 7.4% in the last week. 

Overall, the cryptocurrency market is taking a hit, down 4.2% in the last 24-hours. 

Though weekends are typically bad for Bitcoin and cryptocurrency in general, this nosedive comes after the Federal Reserve indicated it would raise interest rates by half a percentage point on Thursday, which sparked a stock-market selloff

Bitcoin and other cryptocurrencies are increasingly moving in sync with tech stocks

“Bearish sentiment continues to prevail as the Fed looks to slow down inflation at all costs. This has led to stronger correlations between stocks and crypto over the past six months,” crypto market analysis firm IntoTheBlock wrote in its Friday newsletter.

Lucas Outumuro, head of research at IntoTheBlock, told Fortune last week that “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 up-trend.”

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