Bitcoin , the world’s largest crypto by market capitalization, dipped below $40,000, the midpoint of a three-month price range.
Further, the rising correlation between BTC and stocks means investors are more sensitive to the impact of rising interest rates on asset values, similar to what occurred in 2014 and 2018.
On Friday, most alternative cryptocurrencies declined by less than bitcoin, which suggests the current pullback in prices could be temporary.
For example, on April 10, Arthur Hayes, co-founder of crypto derivatives trading platform BitMEX, warned about a BTC price crash toward $30,000.
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