On Thursday, Bitcoin had its largest daily slump in four months, falling about 10% to levels not seen since January.
According to CoinMarketCap data, the leading cryptocurrency by market capitalization started the day at $39,727 and fell below $36,000 by mid-afternoon ET.
Only one other time this year has Bitcoin dropped as much in a single day. BTC began at $40,699 on January 21, but sank by 12% by the end of the day, trading below $35,800.
The crypto market as a whole followed suit. Ether fell by roughly 7%, while Solana, the worst-hit of the top ten digital assets, fell by 15%.
The overall crypto market lost 7.5%, or $140 billion, in value, falling from $1.9 trillion to $1.76 trillion, the lowest level since February.
The bearish attitude in crypto was mirrored in equities. The Dow lost 3.5% in intraday trade, the S&P 500 lost 5%, and the NASDAQ lost 5.5%. 10-year Treasury bond yields, on the other hand, increased by 3.1%.
The losses came amid broad market optimism on Wednesday, when the S&P and the NASDAQ both rose by nearly 3%.
The widespread relief rally, according to analysts, demonstrated trust in Federal Reserve Chair Jerome Powell‘s ability to reduce inflation without sparking a recession.
Powell had promised not to raise the federal funds rate by 0.75% in the near future, instead sticking to his 50-basis-point policy.