Bitcoin plunges again – now 40% off its peak

Bitcoin continued its drop on Friday, falling below US$42 000 to levels not seen since September.

The largest cryptocurrency fell as much as 3.5% to $41 598.86 marking a tumble of about 40% from its record near $69 000 reached on 10 November. Second-largest ether dropped as much as 5.8% to its lowest level since 1 October.

Bitcoin gained about 60% last year, outperforming other asset classes amid a narrative that included institutional adoption, inflation protection and investment diversification. It’s struggled in recent weeks, though, amid a volatile period for financial markets. Spiking inflation is leading central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.  — (c) 2022 Bloomberg LP

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