Bitcoin price today fell to $34,042; has lost 50% of its value since hitting record high

Bitcoin price today extended its decline, and has shed more than 50% from its record high in November while adding further momentum to the meltdown in cryptocurrencies.

Bitcoin price today fell as low as $34,042.78 Saturday, a drop of 7.2%, before paring most of those losses. (REUTERS)

Bitcoin price today extended its decline and has shed more than 50% from its record high in November while adding further momentum to the meltdown in cryptocurrencies. “Margin positions being liquidated caused a wave of additional sell pressure, as assets that had been held as collateral were forcibly sold to pay for margin loans,” said Hayden Hughes, chief executive officer at Alpha Impact in Singapore.

Bitcoin's decline from its peak has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market. While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.

Bitcoin price today fell as low as $34,042.78 Saturday, a drop of 7.2%, before paring most of those losses. Other digital assets also slid, with Ethereum down 12%. Solana and Cardano each fell at least 17%, according to Coinbase. 

“I would expect it to take some time for a bottom to form and for confidence to return, before expecting any sort of bullishness,” Hughes said.

With the Federal Reserve's intentions on reining in inflation rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have moved in the same way as equities and many other risk assets. 

And the case for further caution was reinforced on Friday. Bloomberg News reported that the Biden administration is preparing to release an initial government-wide strategy for digital assets as soon as next month and will ask federal agencies to assessing the risks and opportunities they pose.

El Salvador President Says Bitcoin ‘Really Cheap' Amid Dip

(Bloomberg) El Salvador President Nayib Bukele, who's known to “buy the dip” amid Bitcoin selloffs, didn't disappoint crypto-enthusiasts on Friday by revealing that the Central American country purchased more of the cryptocurrency as it fell around 11%.

“Some guys are selling really cheap,” he wrote on Twitter, adding that the country had purchased 410 Bitcoin for $15 million.

According to Bukele's tweets, El Salvador -- which made the cryptocurrency legal tender alongside the U.S. dollar from Sept. 7. -- had bought at least 1,391 Bitcoin before Friday.

Bukele's announcement was followed by additional declines of the cryptocurrency, with Bitcoin falling below $36,000 for the first time since July in late Friday U.S. trading.