There is a photo illustration of the digital Cryptocurrencies in Hong Kong.
ether prices dived on Thursday night.
In the last 24 hours, the price of the digital currency plummeted by more than 7%. According to data from coinDesk.
In the last 24 hours, the market cap of ether dived 8%. As of 11:20 pm, it was trading at $2,860. After falling as low as $2,809.51 in the last 24 hours.
Wall Street losses on Thursday led to declines in cryptocurrencies. The S&P 500 is down for the third week in a row.
The 10-year U.S. Treasury yield spiked earlier this week, causing investors to abandon riskier assets. Prices and yields move in opposite directions.
The Federal Reserve has indicated that it will begin to reduce its balance sheet, as well as begin to raise interest rates.
A common investment case for bitcoin is that it serves as a hedge against rising inflation as a result of government spending, but analysts are saying the risk is that a more hawkish Federal Reserve may take the wind out of the investment case.
As yields pulled back later in the week, it was a little disappointing to not see bitcoin react more positively to the reversal in Treasury yields.
Since November, the price of the virtual currency has plummeted from a high of over $67,500 in 2021.
Increased regulatory scrutiny and intense price fluctuations have some experts warning of a downturn in the market.
Regulators are cracking down on cryptocurrencies. China and the U.S. are banning certain aspects of the market.
In a Thursday note, Oanda's Moya predicted that the digital currency could tumble below $40,000 as Russia's central bank proposed a ban over the use and mining of cryptocurrencies on Russian territory, claiming the digital currency poses a risk to "financial stability and monetary policy sovereignty."
Russia is one of the top three countries for mining.
CNBC's Ryan Browne contributed to the report.
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