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Unlike the idealists who fueled the initial enthusiasm for Bitcoin in the 2010s, these professional traders see cryptocurrency as part of a broader portfolio of high-risk, high-reward technology investments. Some are under pressure to deliver short-term returns for customers and less ideologically committed to Bitcoin’s long-term potential. And as they lose faith in the tech industry more broadly, it affects their Bitcoin transactions.

“Five years ago, the people who were in crypto were crypto people,” said Mike Boroughs, founder of blockchain investment fund Fortis Digital. “You now have guys covering all risk assets. So when they get shot there, it affects their psychology.”

Concerns in the stock market, affected by tough economic trends, including the Russian invasion of Ukraine and historic inflation levels, were particularly evident in tech stocks, which fell this year. Meta, the company formerly known as Facebook, has dropped more than 40 percent this year. Netflix lost 70 percent of its value.

On Tuesday, shares of cryptocurrency exchange Coinbase also fell more than 10 percent after reporting. reduced revenue and a loss of $430 million in the first quarter. The company’s stock has dropped more than 75 percent overall this year.

Nasdaq already bear market zoneclosed last week with a 26 percent drop from its record in mid-November. Last November was also when the price of Bitcoin hit a peak of around $70,000. The accident happened Reality check for bitcoin evangelists.

“At the end of last year there was an undeniable retail belief that Bitcoin was an inflation hedge – it was a safe haven, it would replace the dollar,” said Ed Moya, cryptocurrency analyst at OANDA trading company. “And what happened is that inflation started to get very ugly and Bitcoin lost half of its value.”

The prices of other cryptocurrencies were also crushed. The price of Ether, the second most valuable cryptocurrency, has dropped nearly 25 percent since the beginning of April, falling below $2,300. Others, like Solana and Cardano, have also experienced spikes this year.