The price of bitcoin seemingly turned a corner in trading today after the cryptocurrency hit its lowest level since July.

The downward slide of bitcoin and other cryptocurrencies dates back to November when bitcoin hit a record high and has continued into the new year. Bitcoin dropped below $50,000 on Dec. 4 before falling below $40,000 on Jan. 21. The slide saw bitcoin drop to $33,000 early this morning before heading upward again.

The two-month slump in cryptocurrencies prices has been blamed on various causes with one common theme being pushed by some outlets is that it’s because cryptocurrency is allegedly a Ponzi scheme. Althought there are some dubious altcoins on the market, that’s a view not shared by others as the leading coins and tokens in 2022 are finding real-world use through decentralized finance and other areas.

One factor that may have played a role is continued crackdowns on cryptocurrency, in particular Russia. Its central bank slapped a ban on the use and mining of cryptocurrencies on Jan. 21, which is when bitcoin dropped below $40,000.

A large consideration, one seemingly ignored by some, is that cryptocurrency markets have followed the broader market. CNBC noted that cryptocurrencies have been moving in tandem with stocks, which have continued to fall since the beginning of the year and just came off of their worst week since March 2020. The same report added that investors have been selling risky assets such as technology stocks as they prepare for higher interest rates coming from the U.S. Federal Reserve.

“It’s possible that macroeconomic concerns, such as the Fed’s response to inflation rates, have facilitated more de-risking activity in general,” Juthica Chou, head of OTC options trading at Kraken, told CNBC. “The recent price drop, coupled with high volatility, could be leading to further selling as participants look to reduce risk.”

One comparison might be Netflix Inc., which no one is calling a Ponzi scheme. Netflix stock is down 45% since November. The price of bitcoin is down by 47% since a November high. That’s either a huge coincidence or indicative of broader market moves that are not exclusive to cryptocurrency.

Bitcoin was trading at $36,718.69 as of 6:45 p.m. EST, up 1% in the last 24 hours. Notably, the Nasdaq Composite rose 0.6% today as well.

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