Bitcoin plunges to $34,602 as the crypto market continues to fall

The largest crypto by market cap, Bitcoin, has dropped to a new low in the aftermath of a major stock sell-off, which also spooked the cryptocurrency market due to the asset classes' continued link.

Bitcoin dropped down about 4% in less than 24 hours on May 8, 2022, trading at $34,602, a new nearly ten-month low from $34,292 on July 24, 2021.

On 4 May, Bitcoin showed symptoms of breaking out after the Federal Reserve raised interest rates by half a percent, the highest level in over two decades.

The rise in Bitcoin was accompanied by a rally in the larger stock market.

The volatility, on the other hand, underlines Bitcoin's continuous trading in a narrow range in 2022, as the currency tries to recapture its 2021 highs.

The asset's recovery to a high of almost $68,000 has been aided by larger market variables such as rising prices, the Ukraine conflict, and Federal Reserve policy tightening.

The recent collapse began when Bitcoin fell below the important support level of $37,500.

The current price suggests that there is a likelihood of a further drop, with the $30,000 level being the next likely target.

Notably, the highest point of the year for Bitcoin was $48,000 in early January.