The cryptocurrency\u2019s market tumble over the weekend echoed the broader stock market\u2019s decline last week as investors moved away from riskier assets.<\/h4>\n
\n Text size<\/span> The price of Bitcoin<\/a> fell 5.3% to $33,879 on Sunday afternoon and is now about half<\/a> its all-time high.<\/p>\n It wasn\u2019t immediately clear what had triggered the decline, but the cryptocurrency\u2019s market tumble over the weekend echoed the broader stock market\u2019s decline last week as investors moved away from riskier assets.<\/p>\n Bitcoin, the largest cryptocurrency, hit a peak price of $67,802.30 in November 2021.<\/p>\n The Federal Reserve\u2019s announcement Wednesday that it was raising interest rates by a half point, the largest hike since 2000 with additional increases expected this summer, sent the Dow Jones Industrial Average<\/a> on Thursday down 1,063 points, or 3.1%. The S&P 500<\/a> dropped 3.6%, and the Nasdaq Composite<\/a> fell 5%.\u00a0<\/p>\n The tech-heavy Nasdaq Composite<\/a> hit a 52-week low on Friday, plunging to 11,990.15. It is down 22.4% year-to-date.\u00a0<\/p>\n As part of its efforts to fight high inflation, the Fed is also starting to wind down its $9 trillion asset portfolio but has ruled out raising interest rates by a more aggressive 0.75 percent.<\/p>\n At the same time, \u201crisk assets\u201d such as tech stocks and cryptos have been hurt<\/a> because bond yields keep rising. The yield on the benchmark 10-year U.S. Treasury<\/a> note touched 3.15% on Friday, near its highest level in four years. Higher Treasury yields reduce the extra return relative to bonds that traders expect from taking riskier bets.<\/p>\n The price of Ether<\/a>, the second-largest digital asset, dropped 6.8% to $2,491 on Sunday. That is after Wednesday\u2019s 6% gain to nearly $3,000, its best daily performance since February.<\/p>\n Write to Janet H. Cho at janet.cho@dowjones.com<\/a><\/p>\n<\/div>\n<\/div>\n
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