Bitcoin Drops to Session Lows as Stocks Underperform (Again)

Bitcoin, the leading cryptocurrency, has dropped to a new intraday low of $29,105 on the Bitstamp exchange.

It spiked to $30,725 earlier this Friday, but the recovery was muted and short-lived.

The world's largest cryptocurrency plunged lower, together with U.S. stocks.

The Dow is down yet another 278 points, dashing hopes of at least a minor recovery after the opening bell. The widely-tracked index is now on track to be down for eight weeks in a row, which has only happened once, all the way back in 1923. On Wednesday, the Dow shed 1,164.52 points, which marked the biggest one-day decline since 2020.

The flagship cryptocurrency is on track to secure a record-breaking eighth week in the red unless it manages to recover above $31,292 by Monday.

Last week, the Terra contagion pushed the Bitcoin price to the $25,000 level for the first time since December 2020. The sell-off marked a short-term bottom for the crypto king, but bulls are not out of the woods just yet.

In recent days, Bitcoin options traders have turned increasingly bearish, with put/call ratios reaching a yearly high of 0.72 on Thursday, according to data provided by research firm Delphi.

Markets have been suffering from heavy selling due to the Federal Reserve aggressively tightening its monetary policy to combat inflation.

In a recent tweet, Galaxy Digital CEO Mike Novogratz has warned that altcoins could decline another 70%, despite being down more than 85% from their record peaks. Hence, he claims that picking bottoms may be "dangerous."