- The Crypto market experienced a fall over the weekend as prices of major cryptos dipped.
- Bitcoin has now reduced to around half of its record high price of US$68,990.
- Increased inflationary pressures, interest rate hikes, and various countries calling for a ban on the use of cryptos can be attributed to this decline.
The global crypto market saw a slump as prices of major cryptocurrencies were headed for a dip. Currently, the total crypto market volume decreased by over 34% to NZ$83.77 billion over the last 24 hours.
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Bitcoin tumbles to 50% of its value
The world’s most popular and largest cryptocurrency, Bitcoin, which peaked at US$68,990 in November 2021, has now reduced to nearly half. Since the beginning of this year, Bitcoin’s value gradually decreased by over 20% and is now priced at US$35,395.05, at the time of writing, with a decline of nearly 17% over the last seven days.
Now, coming to Ethereum, the second-largest crypto after Bitcoin, withdrew by nearly 25% over the week, and is currently trading at US$2,460.14. It is noted that the crypto dipped by about 30% since the start of 2022.
Other cryptocurrencies like Solana and Avalanche too have witnessed a fall in their prices of over 30% during the weekend.
Meme tokens like SHIB and DOGE were also down and are currently valued at US$0.00002224 and US$0.1394, respectively.
Why is there a decline in crypto prices?
Of late, crypto investors are getting cold feet about investing in digital currencies as inflationary pressures and skepticism regarding a hike in interest rates are gradually surmounting.
Moreover, the global crackdown on cryptocurrencies is also one of the main reasons behind the decline in the risk appetite of these digital assets.
As per the latest reports, Russia’s central bank is of the opinion that cryptocurrency poses a threat to the nation’s financial stability, hence, it is planning to impose a ban on crypto mining and its trading.
The Crypto market is marked by steep price fluctuations. Hence, a cautious approach must be taken by tech-savvy investors while taking a dip in this ever-volatile sea of cryptocurrencies.