Bitcoin (BTC) has fallen 10%, bringing its price down to $35,000 U.S. per digital coin.
The decline in Bitcoin came as a major selloff in stocks appeared to spook investors. The largest cryptocurrency is trading today around $35,800 U.S., according to data from CoinDesk. Other cryptocurrencies, such as Ethereum (ETHER), are also sharply lower.
Around $129 billion U.S. of value was wiped off the global cryptocurrency market in a 24-hour period as of 4 a.m. today (May 6), according to data from CoinMarketCap.
The selling of cryptocurrencies was sparked by a painful day on Wall Street where the Dow Jones Industrial Average lost more than 1,000 points, marking its worst single-day drop since 2020.
The tech-heavy Nasdaq fell nearly 5%. Bitcoin has remained correlated to equity markets with the cryptocurrency falling or rising in tandem with stocks.
Earlier this week, the U.S. Federal Reserve (Fed) raised its benchmark interest rate by half a percentage point. Further interest rate hikes have sparked fears that the U.S. economy could go into a recession later this year.
Year to date, the price of Bitcoin is down 25%.
