In the past day, the price of bitcoin has dropped to its lowest level since June of this year. On Friday, the price of one Bitcoin is $26,489, or approximately Rs. 21.9 lakh. This comes after the asset had a 7.52 percent drop over the previous day. Bitcoin’s price fell by $2,065 (approximately Rs. 1.7 lakh) in a single day. A combination of macroeconomic factors, according to experts, have brought Bitcoin and the entire crypto market dangerously close to this year’s record losses.
“According to market data, investors have experienced $1 billion (or around Rs. 8,308 crore) in losses due to cryptocurrency liquidations over the past 24 hours. The Chinese Yuan, which is currently trading at its lowest level since 2007, may be devalued. According to historical precedent, BTC prices fell when China devalued the Yuan for the last time in August 2015, Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, said Gadgets 360. Losses have resulted from the market attitude being affected by the bankruptcy of Chinese real estate firm Evergrande.
Ether is currently trading at $1,676 (approximately Rs. 1.39 lakh), down 6.92 percent. The second-largest cryptocurrency after Bitcoin dropped in value by $122, or nearly Rs. 10,130, over the past day.
On Friday, the majority of cryptocurrencies are seeing steep losses. Binance Coin, USD Coin, Ripple, Cardano, Solana, Dogecoin, Tron, Polkadot, and Polygon are a some of these.
Shiba Inu, Litecoin, Avalanche, and LEO are some more altcoins that are losing money.
The crypto market is currently valued at very nearly $1 trillion, which has psychological significance for the investing community. According to CoinMarketCap, the market capitalization of cryptocurrencies fell by 7.29 percent in the last day to reach $1.05 trillion (approximately Rs. 87,24,334 crore).
The crypto fear and greed index has fallen 13 points and, with a score of 37/100, has reached the fear zone for the first time in more than five months as a result of the widespread crypto market sell-off, according to Chaturvedi.
Other variables are having an impact on the cryptocurrency industry in addition to the problems coming from China.
For instance, market participants are attentively observing their alterations in response to the most recent Federal Open Market Committee (FOMC) minutes release.
According to the CoinDCX team, “Bearish sentiment increased following the most recent FOMC minutes, where the Federal Reserve hinted at further rate hikes.”
The Shiba Inu’s Shiberium layer-2 blockchain’s troublesome debut this week, in which $1.7 million (approximately Rs. 14 crore worth of ETH) got trapped on the Shibarium bridge, also contributed to the increase in investor anxiety.
