The 6.6% drop for the largest cryptocurrency was bitcoin’s steepest since Jan. 21.
Bitcoin (BTC) plummeted in late trading Thursday to below $41,000, the biggest daily dip since Jan. 21.
BTC was changing hands at $40,983 at the time of publication.
- “Bitcoin was the victim to a major de-risking environment on Wall Street as investors view short-term geopolitical risks and potential overly aggressive [Federal Reserve monetary] tightening as a risk to all risky assets,” said Edward Moya, senior market analyst at the foreign-exchange brokerage OANDA.
- Bitcoin is down 6.6% on the day after a roller-coaster week of trading.
- The largest cryptocurrency by market capitalization posted its strongest gain in weeks on Wednesday before Thursday’s skid.
- Markets are currently weighing growing tensions in Europe as Russia continues its standoff with Ukraine.
- Other popular cryptocurrencies including ether (ETH) and solana (SOL) posted losses both near 7%.
- The price drop extended bitcoin’s losses so far in 2022 to about 13%.