New York: Bitcoin extended losses, dropping below $30,000 for the first time since July 2021, putting its decline from a November record high to more than 55% amid a global flight from riskier investments.
The world’s largest digital token fell as much as 3.1% to $29,992 in Asian trading. Ether fell as much as 3.7%, while Solana dropped 8.2% and Avalanche dipped 10.4%.
Bitcoin dropped to as low as $32,763.16 shortly before 1100 GMT, in its fifth consecutive session of falling.
The cryptocurrency has dropped 13 percent so far in May and has lost more than half its value since it hit an all-time high of $69,000 in November last year.
The crypto swoon comes as tightening monetary policy to combat runaway inflation curbs liquidity, turning investors away from speculative assets across global markets.
Volatile trading in digital assets has not been unusual in previous years, but much of 2022 had been relatively quiet for the cryptocurrency market.
Last week, central banks around the world, including the US, UK and Australia, raised interest rates as they attempt to tackle rising prices.
Meanwhile, in the last year Bitcoin has become legal tender in two countries – El Salvador and the Central African Republic.
Since El Salvador said it would allow consumers to use the cryptocurrency in all transactions, alongside the US dollar, the International Monetary Fund has urged it to reverse its decision.
