Crypto On May 6: Market Follows Dow Plunge, Bitcoin Top Loser Among Big Boys

The crypto market was awash in blood with almost all top tokens taking a plunge, following on the lead of the stock markets.

Bitcoin, the king among the cryptos, suffered a massive fall, trading below the psychological $37,000 mark. As of 12.52 a.m. ET on Friday, the top coin was down 8.44% at $36,400.35, according to CoinMarketCap data. Bitcoin's plunge made it one of the biggest losers among the top cryptos.

Ethereum was down 6.88% at $2,742. Cardano was down 9.99% at $0.7943 and Solana was down 12.75% at $82.15.

The fall followed a stunning reversal in the stock markets Thursday, when the Dow Jones Industrial Average lost 1,063 points, erasing all of the previous day's gains. The Federal Reserve had raised its benchmark interest rate by 50 basis points, as expected, and the Dow had surged.

But investors seem to be taking cognizance of the headwinds facing the economy, which is badgered by the Russian invasion of Ukraine and consequent sanctions on the Kremlin, which have exacerbated supply chain issues and commodity supplies.

Thursday's crypto plunge was yet another indication that cryptos are no longer safe-haven assets as some enthusiasts and market insiders have long argued. IMF economists had warned in a blog in January that crypto is now moving in lockstep with equity markets, raising contagion risks.

Shiba Inu and Dogecoin, the poster boys among the hugely popular dog-themed meme coin segment, which often move to their own rhythms, fell too -- an indication of the depth of risk-averseness pulling down the crypto market. Shib, especially, had got a recent boost from its community members being allowed to use the coin for buying virtual land on the Shiba Inu metaverse.