Bitcoin’s price has fallen to its lowest point of the year, a 10-month low.
For the first time since July 2021, Bitcoin has hit below $30,000 on Tuesday, according to AFP.
The report further added that aggressive US monetary tightening and surging inflation didn't help the market.
The world's largest cryptocurrency by market value fell as low as $29,764 in Tuesday trade, before recovering above $30,000, extending a recent collapse in price as investors desert assets viewed as risky.
Bitcoin's value has more than halved since a November surge that saw the token hit a record of nearly $69,000.
While crypto enthusiasts view bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset.
The slump in crypto follows dives on US equities and other markets, with the tech-rich Nasdaq closing down 4.3 percent on Monday, the S&P 500 declining 3.2 percent and the Dow ending off 2.0 percent.