Bitcoin falls below $40,000 mark, other cryptos also see downfall

New Delhi: The CoinDesk data showed that Bitcoin's price fell almost 5% to $40,000 on Tuesday, as the global cryptocurrency market was trading in the red.

Concerns about inflation and recession continued to weigh on Bitcoin, Ethereum, and other major cryptocurrencies.

Bitcoin was trading at $39,961, down 5.36 percent. The price of Ethereum has dropped nearly 5% to $3,000.

XRP, Terra, Solana, Cardano, Avalanche, and Polkadot all lost more than 5%.

Other popular alt coins, such as Dogecoin and Shiba Inu, have lost almost 6% of their value.

According to Arthur Hayes, co-founder of crypto trading platform BitMEX, Bitcoin, the most valuable cryptocurrency by market cap, might fall to $30,000 by June. He also stated in a blog post that the same mechanism might drive Ether to $2,500. "The Nasdaq 100 is significantly connected with Bitcoin and Ether. If the NDX falls, the crypto market will fall with it "he stated.

Concerns about stricter monetary policy have pushed cryptocurrency prices lower. Even the enthusiasm generated by last week's Bitcoin 2022 conference in Miami failed to halt the downward trend.

Bitcoin's tendency to move in lockstep with assets like US tech stocks makes the decrease less surprising after a rough week for the stock market in the United States. Its connection with the Nasdaq 100 Index has re-established new highs.