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Cryptocurrencies dropping along with stocks in uncertain economy

Posted at 2:00 PM, May 10, 2022

CLEVELAND — Cryptocurrency is proving to be just as vulnerable to the same concerns dragging down the rest of the stock market.

Bitcoin prices have plunged nearly 15% in the last week, to a price of just below $33,000. The cryptocurrency is down more than 50% below its record high from late last year.

Other cryptocurrencies have been hit hard, too. Several are down about 15% in the last week; this comes less than one week after the federal reserve announced a half-point rise in interest rates.

“That's really what's happening now is that the market participants and the federal reserve trying to get clarity as to what the future path is of the economy and of interest rates,” said Gregory Harmon, an assistant professor of banking and finance at Case Western Reserve University. “And if we get that, once we finally get that, we'll probably see a turnaround in the marketplace and that we'll see equity markets start to bounce." 

Stocks are hurting, too; on Monday, the DOW dropped another 653 points, the S&P 500 fell below 4,000 and the NASDAQ fell. CNBC says it's the lowest level since March of 2021.

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