The largest cryptocurrency fell as much as 3.5% to $41598.86 marking a tumble of about 40% from its record near $69,000 reached Nov. 10. Second-largest Ether dropped as much as 5.8% to its lowest level since Oct. 1.
Bitcoin gained about 60% last year, outperforming other asset classes amid a narrative that included institutional adoption, inflation protection and investment diversification. It’s struggled in recent weeks, though, amid a volatile period for financial markets. Spiking inflation is leading central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
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