Bitcoin dips below $36,000

Yahoo Finance reporter David Hollerith breaks down how bitcoin and other crypto assets have performed during this week's market rout.

Video transcript

RACHELLE AKUFFO: All right, shifting gears now, we're talking crypto, a tough day for crypto with the granddaddy of them all, Bitcoin, now edging closer, as you can see there, under $36,000. More on this, let's break it down with our very own David Hollerith. David, what are we looking at today?

DAVID HOLLERITH: You know, I think it's been a general-- a slight recovery, I guess we'd say, in the crypto market. Right now, the global market cap is sitting at $1.6 trillion. So we're about down 0.94% since yesterday. Obviously, yesterday was a pretty massive tumble. You know, this was sort of based around the movements of the Fed rate hike that is around the FOMC meeting, which happened on Wednesday.

And I think leading up even on Tuesday, analysts and a lot of traders I'd spoken to, they kind of were aware that there might be a little bit of a boost on Wednesday in cryptocurrency prices. And then they were expecting sort of it to fall the following day. But I think a key indicator, Bitcoin sort of serves as, like, a bellwether for the asset, these assets. And it has this key point of $40,000.

And basically, what happened was, it didn't hit that point during the rally on Wednesday. And that's sort of a sign. Like, in the past, when the Federal Reserve sort of does something that makes the stock market and crypto prices go up, it usually responds and gets to that $40,000 level. So I think that was sort of a key point.

RACHELLE AKUFFO: It's certainly been hovering in that range there. We'll have to see what happens in the following days. Our very own David Hollerith, thank you so much.