The flagship cryptocurrency plummeted to as low as $29,197 before ticking up above the $30,000 threshold. Bitcoin had previously peaked at an all-time high of $69,000 in November.
While there are many factors at play in Bitcoin's and other cryptocurrencies' downward slide, the digital assets appear to be increasingly tethered to traditional stocks, which have been falling precipitously this week and have been in the red more generally since the start of the year.
Last year, as consumer prices were quickly rising, some investors saw Bitcoin and cryptocurrencies more generally as a possible hedge against inflation. That narrative, though, has shifted as Bitcoin has fallen, even as inflation has surged. Consumer prices increased 8.3% in the 12 months ending in April, according to data released on Wednesday.
Further adding to volatility in the stock and crypto markets is the war in Ukraine, which has disrupted supply chains and sent energy prices soaring.