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.
- The price drop extended bitcoin's losses so far in 2022 to about 13%.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.