Know how cryptocurrencies performed over the weekend

January 24, 2022 06:50 PM AEDT

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Know how cryptocurrencies performed over the weekend — Image source: Shutterstock.com

Highlights

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.

A Quick Read: Bitcoin back under pressure as crypto bear market looms

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.

Do Read: Could Bitcoin plummet below US$30,000 in 2022?

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.

Must Read: Why is crypto market down? 5 key reasons

Moreover, the global crackdown on cryptocurrencies is also one of the main reasons behind the decline in the risk appetite of these digital assets.

Interesting Read: Russia to ban mining and use of cryptocurrency

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.

Bottom Line

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.