Bitcoin’s price plunged below $35,000 several times Saturday, extending a slide that started when it dropped below $40,000 Thursday evening. This week’s fall is the second time it dropped below $40,000 this month, and the first time it dropped below $35,000 since July 2021.
This week’s big drop for Bitcoin — Ethereum saw a big drop too — comes amid the stock market’s worst week in nearly two years, and after the release of the Federal Reserve’s long-awaited report on a possible government-issued digital currency.
Before Thursday’s big drop, Bitcoin’s price was between $39,000 and $45,000 last week, and it’s been between $34,000 and $44,000 so far this week.
Recent slumping prices follow continued reports of surging inflation, a disappointing December jobs report and the release of minutes from the Federal Reserve Board’s December meeting, which signaled a winding down of measures to prop up what it described as a steadily improving economy.
After nearly hitting $52,000 on Dec. 27, Bitcoin has ranged between $34,000 and $50,000 in the days since.
Despite the recent slump, Bitcoin started 2022 on a relative high note, with a strong November and early December that gave way to the recent downward trend.
After starting 2021 in the $30,000 range, Bitcoin increased throughout the year and hit its current all-time high when it went over $68,000 on Nov. 10.