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%.
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