On Tuesday, Bitcoin fell below $30,000 for the first price since July 2021, as cryptocurrencies tracked falling markets, with investors alarmed by aggressive US monetary tightening and increasing inflation.

The world's largest cryptocurrency by market capitalization plummeted as low as $29,764 in Tuesday trade before recovering above $30,000, continuing a recent price decline as investors flee riskier assets.

Since a November rise that saw the token reach a high of roughly $69,000, Bitcoin's value has more than halved.

While cryptocurrency fans see bitcoin as a hedge against inflation, many traditional investors see it as a riskier asset.

They have been selling bitcoin and other digital tokens, as well as other risky assets such as tech stocks, as the US Federal Reserve raises interest rates to combat decades of excessive inflation.

Edward Moya, senior market analyst for the Americas at Oanda, says Bitcoin is "breaking below some key technical levels as the never-ending selloff on Wall Street continues," adding that "the institutional investor is paying close attention to bitcoin as many who got in last year are now losing money on their investment."

According to Moya, although the fundamentals of the token have not changed in months, worries of growth and a possible recession are creating "a very difficult environment for cryptos."

"No one is looking to buy the crypto dip just yet and that leaves bitcoin vulnerable here."

The crypto drop mirrors falls in US stocks and other markets, with the tech-heavy Nasdaq down 4.3% on Monday, the S&P 500 down 3.2%, and the Dow down 2.0%.