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Highlights
- The crypto market has plunged again over the weekend, as the prices of major cryptocurrencies recorded a fall
- Popular tokens like Bitcoin, Ethereum and Cardano continue their downward price trend
- Analysts believe that national governments’ campaign against cryptocurrencies and the emergence of the new Covid-19 variant, Omicron, are the reasons behind this slump
The global cryptocurrency market plunged again on 18 December when the overall market capitalisation dipped from US$2.21 trillion to US$2.14 trillion.
The world's most popular crypto, Bitcoin, continues to fall after peaking at US$69,000 in November, this year.
At the time of writing, it was priced at US$46,872.85, with a drop of nearly 5.10%, over the last seven days.
Must Read: Would Bitcoin make a comeback from lean patch?
Source: © 2021 Kalkine Media®
How have the other cryptos been faring?
Not only Bitcoin, other popular cryptocurrencies, too, have witnessed a fall over the past few weeks.
The second-largest cryptocurrency across the globe, Ethereum, recorded a slump of about 2.94% over the last week and is currently valued at US$3,967.50.
Another popular digital currency, Cardano, plunged by 9.34% over the last seven days and is trading at US$1.24, at the time of writing.
Tokens like Polkadot and XRP, too, have diminished by 8.85% and 1.46%, respectively, in the past week.
On the other hand, cryptos like Avalanche advanced by nearly 35.69% over the last seven days and is currently valued at US$116.25.
A Quick Read: Why is Avalanche (AVAX) surging as the crypto market sinks?
Similar was the case with Solana, Terra and Polygon, whose prices rose over the last seven days and are currently priced at US$183.70, US$73.58, and US$2.24, respectively.
Interesting Read: Is price rise trend of top cryptos temporary?
Why is the crypto market down?
Generally speaking, the overall crypto market has been facing a major drop in its prices ever since the Chinese government's crackdown on these new-age currencies began.
Related Read: Will Russia follow China's footsteps with Crypto ban?
Also, apart from a few exceptions, national governments all over the world have been proposing a ban on cryptocurrencies, thereby sending panic waves among crypto investors.
Do Read: Crypto Catch: Bank of England says bitcoin potentially “worthless”
Another factor that has affected the global crypto market is the arrival of a new coronavirus variant, Omnicron.
Moreover, analysts believe that the upcoming holiday season is another reason for the value drop in crypto prices.
Bottom Line
Considering the current fluctuations across the crypto market, investors are advised to cautiously invest in cryptocurrencies as per their risk appetite.
