The Crash Of Crypto Prices

Bitcoin’s value today continued to fall, buying and selling below the $39,000 level, weighed down by traders’ dwindling confidence. The world’s hottest and most valuable cryptocurrency by market capitalization fell more than 7% to $38,802. Since the beginning of the year, Bitcoin has lost about 14% of its value (year-to-date or YTD).

This month, major cryptocurrencies were under pressure. Not only have the larger tokens lost their luster, but the excitement around high-flying altcoins has faded as well. Except for dollar-pegged Tether and USD Coin, seven of the top ten cryptocurrencies have lost 25% of their value in the previous month, with all of them seeing double-digit losses. Bitcoin and Ethereum have both lost 13-17 percent of their value, while Dogecoin and XRP have lost up to 25% of their value. Even the soaring Solana has plummeted from $210 to $155. The latest drop has made crypto investors nervous since the digital token market has recently become unpredictable. Investors are concerned about their money being eroded.

Move Towards The Downward Direction

Meanwhile, according to CoinGecko, the global cryptocurrency market valuation has dropped more than 5% to $1.98 trillion, falling below the $2 trillion level. This is due to the recent drop in crypto prices. However, Ether, the second-biggest cryptocurrency and the token tied to the Ethereum network, fell below the $3,000 threshold. According to CoinDesk, it has dropped more than 8% to $2,861. The token increased by approximately 400 percent last year, compared to 60 percent for Bitcoin, but it is currently down over 18 percent in January.

Similarly, Dogecoin’s value dropped by over 8% to $0.15, while Shiba Inu’s value dropped by over 7% to $0.000026. Binance Coin, on the other hand, was down 9% at $423. Different cryptos, such as Cardano, have dropped over 11 percent, while XRP, Polkadot, Tether, Litecoin, Solana, Terra, and Stellar have all had price drops of 3-10 percent in the last 24 hours. As skepticism about the rapid growth of digital assets spreads throughout the world, the crypto industry has faced a series of regulatory setbacks in recent days. The US Securities & Trade Commission’s assault on digital assets is expected to target crypto exchanges in 2022. According to Bloomberg, Russia’s national financial institution may consider banning Bitcoin production and crypto buying and trading.

According to a survey from digital asset manager CoinShares, crypto funds had their fifth consecutive week of outflows, with total withdrawals of $73 million for the week ending 14 January. This month, major cryptocurrencies have been under pressure. Not only have the larger tokens lost their luster, but the excitement around high-flying altcoins has faded as well. The only method, according to market observers, is to keep a close eye on the worldwide market and trends before making an intelligent investment selection. “It’s impossible to say whether the crypto market will be a better moment or a terrible one,” said CoinSwitch’s Nair. El Salvador could have been a key catalyst, according to Schweifer. For the very first time in history, a country has demonstrated that the United States dollar is not the sole currency in the world.

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