The stock market fell sharply on Thursday, erasing the gains made in the previous rally, driven by the historic decision made by the United States’ FED to increase interest rates. In 24 hours, the entire cryptocurrency market lost 7.5%.

The biggest U.S. stock market index, which tracks the performance of 500 major companies, S&P500, dropped by 4%. Technology companies saw the largest daily decrease since January, with a 5.1% decline.

Bitcoin (BTC), the dominant cryptocurrency, soon fell 10 percent. The price plummeted from $39.542 at lows of $35.871 to lows just six hours later. The drop marked the biggest decline in Bitcoin’s price in three months.

Altcoins such as Ethereum suffered larger losses. Over the last 24 hours, the total market capitalization for cryptocurrency has dropped by almost 7.5% and now stands at $1.66 trillion as of this writing.

Since the outbreak of the global pandemic in 2020, Bitcoin has shown a positive correlation to major stock market indexes. This is because the benchmark cryptocurrency moves in the exact same direction as the stock markets, instead of acting as a more safe-haven asset like gold.

Bitcoin’s current correlation level with the S&P500 index is one of the largest in history, according to Arcane research data.

Financial professionals were shocked by the recent sell-off in stock markets, which led to cryptocurrency’s price fall. “The 100% reversal within half a day is just truly extraordinary”, one of them told CNBC.

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