Bitcoin value falls by 50% since November peak

The value of world's most used cryptocurrency Bitcoin continued to slide over the weekend as it dropped below $34_000_ according to the Coinbase cryptocurrency exchange.

Bitcoin has now fallen by 50 per cent by market value since its peak in November 2021. The slip in the value of digital assets comes as global stock markets also dropped in recent times.

Bitcoin accounts for about one third of the cryptocurrency market with a total value of $650 billion. Ethereum_ the world's second biggest cryptocurrency_ has also fallen in value_ down by more than 10 per cent in the last week.

As more traditional investors trading digital assets_ Bitcoin and other cryptocurrencies have increasingly followed global stock markets movements. In times of market uncertainty_ traditional investors would often sell what they see as riskier assets and move their money into safer investments and many of them see cryptocurrencies as risk assets.

Last week_ many of the countries including the United States_ United Kingdom and Australia_ have raised interest rates as they attempt to tackle inflation. That has triggered more concerns that inflation and the higher cost of borrowing could have a big impact on global economic growth.

Investors are also worried about the impact of the Russian invasion of Ukraine on the world economy.

Meanwhile_ El Salvador and the Central African Republic have approved Bitcoin as a legal tender_ although_ the International Monetary Fund (IMF) has criticized the decision and urged to reverse the decision.