Bitcoin’s value continued to fall over the weekend as it fell below $34,000 (£27,630), according to cryptocurrency exchange Coinbase.
The world’s largest cryptocurrency by market value is down 50% since its peak in November last year.
The decline in the value of digital assets comes as stock markets around the world have also fallen over the past few days.
On Monday, some Asian markets fell again, with Japan’s benchmark index, the Nikkei, falling about 2%.
Bitcoin accounts for about a third of the cryptocurrency market with a total value of $650 billion.
Ethereum, the world’s second largest cryptocurrency, has also lost more than 10% in value over the past week.
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Although much of 2022 was relatively quiet for the cryptocurrency market, volatile trading in digital assets has not been all that unusual over the past few years.
Trading has been dominated by individual investors for years, but more recently the market has seen an influx of professional investors such as hedge funds and money managers.
As more traditional investors trade digital assets, cryptocurrencies have increasingly followed movements in global stock markets.
Many of the institutional investors who buy cryptocurrencies treat them as risky assets, much like tech stocks.
During times of market uncertainty, traditional investors often sell what they see as riskier assets and reallocate their money to safer assets.
Last week, central banks around the world including the US, UK and Australia hiked interest rates to counter rising prices.
The US Federal Reserve increased interest rates by half a percentage point, marking the largest rate hike in more than 20 years.
This has raised concerns among some investors that inflation and higher borrowing costs could have a major impact on global economic growth.
Investors are also worried about the impact of the war in Ukraine on the global economy.
Meanwhile, bitcoin has become legal tender in two countries — El Salvador and the Central African Republic — in the last year.
Because El Salvador said it would allow consumers to use the cryptocurrency alongside the US dollar in all transactions, the International Monetary Fund has urged it to reverse its decision.
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