The massive crypto sell-off: Markets wipe off $1 trillion since Nov 2021
Cryptocurrency has interesting story of indulging traders but 2022 has not shown up yet positive market.
image for illustrative purpose
Hyderabad Cryptocurrency has interesting story of indulging traders but 2022 has not shown up yet positive market. As year began, Bitcoin has been down 16 per cent and Ethereum tumbling 22 per cent. This downfall continued for Bitcoin and other crypto currencies yesterday as well, when Bitcoin slumped to its lowest levels in the last five months, presently trading at $35,017.4. The second dominant crypto, Ethereum is scaling low currently trading at $2,451.47.
This is a 40 per cent fall for Bitcoin from its all-time high of $69,000 in November 2021. The total fall has resulted in almost $1 trillion being erased from the market ever since.
A market capitalisation of around $150 billion was wiped out over the last 24 hours collectively by various cryptos, with the global crypto market cap declining by 14.75 percent, currently standing at 1.57 trillion, per data from the crypto portal Coinmarketcap.
With Bitcoin down 8.57 per cent and Ethereum dipping 14.67 per cent since yesterday, most cryptocurrencies, other than some stablecoins enlisted as the Top 100 biggest cryptos were swimming in red. Other major currencies like Cardano nosedived around 17.69 per cent with Solana tumbling 23.44 per cent over the last 24 hours.
The Central Russian Bank has recently announced its intention to implement a blanket ban on crypto trading, circulation, mining and other associated activities, sending waves of fear across, given that Russia is a prominent crypto mining hub, preceding only the USA and Kazakhstan.
Federal Reserve's also posing its stance with interest hike rate in March 2022.
The Fed is expected to raise interest rates multiple times during the course of this year in a bid to curtail inflation, thereby setting off a sell-off sentiment against risky investment classes like cryptos and making bond yields significantly more attractive.
Biden government also looking out on the impacts of cryptocurrencies and plants to release a comprehensive strategy to cover various digital assets.
Wall Street sell-off which took place yesterday pressed on by the crypto market's increasing linkage to the stock market, thanks to the rising institutional interest in crypto, which adversely impacts cryptocurrencies as well. Per CNBC, The Nasdaq Composite lost 7.6 per cent over the week, and the S&P 500 fell 5.7 per cent for its third straight weekly decline, exacerbating the crypto sell-off.
