Bitcoin prices fell sharply on Thursday night, while ether prices also dived.
Bitcoin plummeted by 8% in the last 24 hours, and traded at $38,524 as of 10:56 p.m. ET, according to CoinDesk data.
Ether, the second-largest cryptocurrency by market cap, dived more than 9%. It was trading at $2,828 as of 10:57 p.m. ET, according to CoinDesk.
The declines in cryptocurrencies follow Wall Street losses on Thursday. The Nasdaq was down almost 5% this week, and the S&P 500 is into its third straight week of losses.
As the 10-year U.S. Treasury yield spiked earlier this week, rising rates have caused investors to shed their positions in riskier assets.
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The Federal Reserve has also indicated it plans to begin reducing its balance sheet, as well as tapering of bonds and raising interest rates.
A common investment case for bitcoin is that it serves as a hedge against rising inflation as a result of government stimulus.
But analysts are saying the risk is that a more hawkish Federal Reserve may take the wind out of bitcoin’s sails.
Bitcoin prices have fallen sharply since November, tumbling over 40% from a high of over $67,500 in 2021.
Some experts warn that the crypto market could be heading toward a downturn soon, as heightened regulatory scrutiny and intense price fluctuations dampened bitcoin’s prospects.
Regulators are cracking down on cryptocurrencies too. China completely banning all crypto-related activities and U.S. authorities are also clamping down on certain aspects of the market.