The value of the virtual currency fell below $40,000 in the early morning.
The popular coin sold off quickly this morning. The value of ether is 5.1% less than the value of the coin.
It is always risky to cover price changes, but the fall in the value of bitcoin has crossed the threshold from notable to material. According to Yahoo Finance, the recent all-time high for the coin was $68,789.62 per coin. The current price puts the decline at 42%.
It would take four times what it would need to meet the requirements of a correction to enter a technical bear market.
The decline in the value of certain cryptocurrencies is not slowing the world. The Block noted this morning that NFT trading volumes are strong at the popular OpenSea marketplace. It is not yet clear if the selloff will have an impact on NFT trading activity, despite the fact that web3 activity appears strong by some measures.
The selloff could hurt results for other participants. There is a positive correlation between rising prices and trading volumes. Companies that make their daily bread off of trading fees are more likely to have a negative financial performance. The past is not a perfect predictor of the future, but today's selloff is not bullish.
Tech stocks as a whole are off 1.81%, while software stocks are off 2.62%, and that's not all.
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