Bitcoin fell below $35,000 at the weekend as the global market sell-off spread to cryptocurrencies.

Bitcoin price traded at levels not seen since August on Saturday, as the risk asset sell-off spread to the cryptocurrency. Bitcoin has now fallen more than 50% from its record high in November

Bitcoin BTCUSD, -4.27% fell to $34,042.78 Saturday, down 7.2%, before paring losses. Other digital assets also fell, with Ethereum ETHUSD, -7.72% down 12%. Solana and Cardano are down at least 17% each, according to Coinbase.

The declines follow a volatile session on Wall Street on Friday that saw stocks swing from early gains to sell off, as investors repeated this week's selloff pattern, pushing the Nasdaq Composite COMP, -2.72% deeper into correction territory.“Pessimism continues to grow among investors and traders when it comes to risk assets and this is especially affecting the prices of equities and bitcoin,” said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients.“The problem with bitcoin is that when it starts to go down, the price action drops like there is no tomorrow,” said Aslam, who added that January also tends to be a volatile month for cryptocurrencies historically. Aslam also cited a proposal from Russia's central bank on Thursday to ban the use and mining of cryptocurrencies. Russia is one of the world's leading bitcoin mining locations, and joins China, which imposed a ban on its own activity last year.

“Many altcoins have become support at summer 2021 lows, making it important that bitcoin holds support as it sets the tone for the cryptocurrency space,” Katie Stockton, managing director of Fairlead Strategies, a technical research firm, wrote in a Friday briefing. Stockton provides a 30%-70% probability of continued breakdown below the current BTC price level.