Bitcoin at roughly half its peak as crypto markets tumble

Bitcoin continued its downward tumble on Monday morning, losing roughly half its value since its record high in November. The cryptocurrency fell below $34,000, a roughly 10% decline since Friday. 

It’s not alone. Bitcoin is one of the many digital coins to have tumbled over the weekend, with the cryptocurrency market as a whole losing around $130 billion over the last 24 hours, according to CNBC. Ether, which held at around $4,000 for much of December, dropped to less than $2,100 on Monday. 

The market’s downward slide comes as the US Federal Reserve has signaled it may soon tighten monetary policy and raise interest rates. As a result, there’s been a broad market sell-off of cryptocurrencies and other riskier assets, including technology company stocks, according to The Wall Street Journal.

Last week, the Federal Reserve also released a long-awaited report that examines the potential benefits and risks of a central bank digital currency, or CBDC. While the Fed didn’t take a stance on these digital dollars — which unlike most cryptocurrencies are issued and regulated by a country’s financial authority — the report reflects the government’s growing interest and concern over digital assets as cryptocurrencies gain popularity.