Bitcoin dips below $37,000 for the first time since August 2021

It is becoming more commonplace: when stocks fall, so doesbitcoin.

The world's largest coin by market value fell below $37,000 Friday to its lowest dollar value since August 2021, according to CoinDesk. It settled at $36,689. 39, down 11% from Thursday and down 46% from its record in November 2021, is down 11% from Thursday.

The stock market fell quickly after a late-afternoon swoon on Thursday.

Since the beginning of the year, cryptocurrencies and stocks have fallen together due to investor worries about how Federal Reserve interest-rate increases will ripple through markets.

Clara Medalie, research director at Kaiko, said that cryptocurrencies are no longer an isolated risk asset and are responding to changes in global policy. It's not surprising that both will start to become more volatile as the liquidity taps turn off. According to Kaiko, the coin is near its highest correlation with the stock market since September 2020, which is a measure of how it has become more entwined with markets. It's been a long time since that side-by-side movement has fluctuated over time, with long stretches when cryptocurrencies move according to their impulses.

The adoption of cryptocurrencies among investors may have made them more sensitive to selloffs in stocks.

The decline in the dollar value of the digital currency on Friday coincided with a 20% fall in Netflix's shares, erasing more than $40 billion of market value. Some analysts suggest that selloffs among popular tech stocks could prompt investors to liquidate positions in their holdings to limit overall losses and meet margin calls, as well as to cover possible losses on trades made with borrowed money.

Chris Bendiksen, head of research at London-based asset management firm CoinShares said thatBitcoin's excellent store of liquidity makes it so that it is drawn on in times of margin calls.

Shares of criptocurrencies, which tend to track performance of the digital currency, fell. Coinbase Global dropped 13%. MicroStrategy, which makes business software, has invested billions of dollars inBitcoin and its chief executive, Michael Saylor, is a vocal advocate of the cryptocurrencies, shed 18%.