In the past 24 hours, the value of Bitcoin transactions fell to the lowest level since June this year. Bitcoin was worth $26,489 (roughly Rs 2.19 lakh) on Friday. This came after the asset fell 7.52% in the last day. In terms of price, Bitcoin plummeted by $2,065 (roughly Rs 170,000) in one day. Experts point to a number of macroeconomic reasons for Bitcoin and the entire cryptocurrency market to face record losses this year.
“According to market data, investors have lost $1 billion (approximately Rs. 8,308 crore) in cryptocurrency liquidations in the past 24 hours. There is a possibility of a depreciation of the yuan, which is currently trading at its lowest level since 2007. Historically , when China last devalued its yuan in August 2015, bitcoin prices plummeted,” said Parth Chaturvedi, head of investments at CoinSwitch Ventures. Tell Gadget 360. The bankruptcy of Chinese real estate giant Evergrande also weighed on investor sentiment, leading to losses.
Ether fell 6.92 percent and is currently trading at $1,676 (roughly Rs 1.39 lakh). The second-largest cryptocurrency after bitcoin lost $122 (roughly Rs 10,130) in the last day.
Most cryptocurrencies suffered losses on Friday. These include Binance Coin, USD Coin, Ripple, Cardano, Solana, Dogecoin, Tron, Polkadot, and Polygon.
Other loss-making altcoins include Shiba Inu, Litecoin, Avalanche and LEO.
Currently, the valuation of the cryptocurrency market is very close to the trillion dollar mark, which has important psychological significance for investors. According to the data, the cryptocurrency market capitalization fell 7.29% to $1.05 trillion (Rs 87,24,334 crore) in the past 24 hours coin market cap.
“The massive sell-off in the cryptocurrency market led to a slump in the Crypto Fear and Greed Index, which fell 13 points and entered the fear zone after more than five months, with a score of 37/100,” Chaturvedi noted.
Apart from troubles from China, other factors are affecting the cryptocurrency market.
For example, market participants are closely watching its movements in response to the recently released Federal Open Market Committee (FOMC) meeting minutes.
The CoinDCX team told Gadgets 360: “Bearish sentiment has increased following the release of the latest FOMC minutes, with the Fed signaling further rate hikes.”
Adding to investor panic this week was a problem with the launch of Shiba Inu’s Shiberium layer 2 blockchain, with $1.7 million (roughly Rs. 140 crore) worth of ETH stuck on the Shibarium bridge.
Cryptocurrency is an unregulated digital currency, not legal tender, and there are market risks. The information presented herein is not intended to and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any losses arising from any investment based on any perceived advice, forecast or any other information contained in the article.
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