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Bitcoin, the world's most valuable cryptocurrency, was once trading at an all-time high of nearly $70,000 last November. But in the last 24 hours, Bitcoin has plunged more than 8%, trading as low as $34,064.90.

Bitcoin’s recent drop in value has erased over $600 billion in market value, with more than $1 trillion being wiped from the global cryptocurrency market.

Bitcoin's value has plummeted by almost a quarter since the start of the year, while the world's second-largest cryptocurrency, Ethereum, dipped approximately 35 percent. This comes as Bitcoin and other major cryptocurrencies are facing a dramatic market selloff.  Given the increasingly positive correlation between equities markets and cryptocurrencies, this week's poor stock market performance — the worst since the COVID-19 pandemic began — saw a major selloff of major stocks, particularly tech stocks. 

This past week, the Dow Jones industrial average fell by almost 4% or 1,400 points. Similarly, the S&P 500 dropped 5.1 percent, spurred by high inflation that will cause the Fed to raise interest rates later this year. 

“Crypto is, of course, vulnerable to these sorts of selloffs given its naturally higher volatility historically, but given how large market caps have gotten, the volatility is worth thinking about both in raw dollar terms as well as in percentage terms," analysts at Bespoke Investment Group told Bloomberg.

Since November, the value of Bitcoin has tanked approximately 50 percent. 

Bitcoin is expected to enter a bear market this year, according to a report by Huobi Research.

Over the next five years, Goldman Sachs projects that Bitcoin's price could easily exceed $100,000 due to its increasing displacement of gold in the market share.