Cryptocurrency Market Tumbles Amid Fears of Worsening US Economic Outlook

Bitcoin Price Falls, US Futures Further Pain Ahead

The price of bitcoin has plummeted to a three-week low, sparking fears of further pain ahead for investors who have seen their holdings lose significant value in recent days.

The world's largest cryptocurrency by market value fell as low as $34,300 on Monday, according to CoinDesk, before recovering slightly to trade around $34,800. The decline marks a 10% drop from last week's highs and a 15% decline from the record high of $41,000 reached in January.

The price fall has been driven by a combination of factors, including increased selling pressure from investors looking to lock in profits, and concerns over the potential impact of rising interest rates and inflation on the cryptocurrency's value.

The pain is not limited to spot markets, with US bitcoin futures also suffering significant losses. The Cboe Global Markets' bitcoin futures contract fell as low as $34,400, while the Intercontinental Exchange's (ICE) Bakkt futures contract dropped to $34,200.

Analysts warn that further declines could be ahead, citing the fact that the cryptocurrency's price has failed to hold above the $35,000 level, a key technical level that had previously served as support.

"The price action is bearish, and we expect further selling pressure to continue," said Josh Olsder, a cryptocurrency analyst at Bloomberg Intelligence. "The $35,000 level is a key support, and if that breaks, we could see a further decline to $30,000 or even lower."

The decline in bitcoin's price has also had a knock-on effect on other cryptocurrencies, with many major altcoins also falling in value. Ethereum, the second-largest cryptocurrency by market value, fell as low as $1,300, while Ripple fell to $0.25.

The price falls have been met with a mix of concern and optimism from investors, with some seeing the declines as an opportunity to buy in at discounted prices. Others, however, are more cautious, citing the potential for further declines and the risks associated with investing in a highly volatile market.