Bitcoin extends losses, drops 11%
Bitcoin fell below $31,000 for the first time since July 2021, bringing its slump from a November record high to more than 50% amid an international flight from risky investments.
In New York, the world’s most significant digital token plunged as much as 11% to $30,339. The intraday decline is the greatest since January 21. Ether was as high as 11%, Solana was down 14%, and Avalanche was 18%. Monetary policy tightening to contain runaway inflation and dwindling liquidity is driving investors away from speculative assets across global markets.
Do Kwon, the founder of Terraform Labs, which controls the Terra blockchain, is working to strengthen its algorithmic stablecoin after losing its peg to the dollar during the market meltdown.
According to Edul Patel, chief executive officer of Mudrex, algorithm-based crypto investing platform, rising interest rates give individual and institutional investors pause for thought about the crypto market forecast. Bitcoin’s more than 30% loss in 2022 contrasts with a more than 10% decline in global bonds and equities and a 2.5 percent increase in gold. Bitcoin’s latest slump puts it at risk of dropping out of the trading range in 2022. Thus, reversing the most recent bull run that pushed the currency to over $69,000 in November. With a 40-day correlation of 0.82 to the S&P 500 stock index.
Cryptocurrency Market
According to CoinMarketCap data on Tuesday, the worldwide crypto market valuation has decreased to $1.41 trillion, a 7.94 percent decrease in the last 24 hours (8.43 am). Almost all of the top ten crypto prices have fallen in the previous 24 hours, while the global cryptocurrency market volume has climbed by 84.76 percent to $182.54 billion. The overall volume in DeFi was $20.84 billion, accounting for 11.41 percent of the total 24-hour volume in the crypto market. Stable coin volume was $163.94 billion, accounting for 89.81 percent of the full 24-hour crypto market volume.
According to experts, Bitcoin and other cryptocurrency prices are collapsing due to a widespread sell-off fueled by investor panic. Even institutional investors appear to be dumping their crypto assets in large quantities, causing a dramatic price drop.
Rising inflation, mounting Russia-Ukraine tensions, rising inflation, and a hazardous scenario in Sri Lanka are all weighing on global financial markets. The Indian rupee finished at a record low, raising the cost of imports and substantially influencing financial markets.
Prices of several other top ten crypto assets have plummeted in recent days. Take a look at how prices have changed in the previous 24 hours:
ETH (Ethereum): In the last 24 hours, the price of Ethereum fell by 5.9 percent to USD 2319. ETH’s price has dropped by 18.63 percent in the previous seven days. It is presently the second most valuable crypto asset in market capitalization.
Binance (BNB): The price of Binance currency fell 11.67 percent in the previous 24 hours to $309. BNB’s price has dropped by 20.92 percent in the last seven days. It is presently the fourth most valuable crypto asset in market capitalization.
