Bitcoin, in the last 24 hours, sunk to its lowest trading value since June this year. The value of Bitcoin stands at $26,489 (roughly Rs. 21.9 lakh) on Friday. This is after the asset registered a loss of 7.52 percent over the last day. Price wise, Bitcoin registered a plunge of $2,065 (roughly Rs. 1.7 lakh) in one day. Experts have noted that a number of macro-economic reasons have driven Bitcoin and the overall crypto market to the edge of seeing record losses for this year.
“According to market data, investors have registered $1 billion (roughly Rs. 8,308 crore) in losses in crypto liquidations in the last 24 hours. There has been a potential devaluation of the Chinese Yuan, which is trading at the weakest level since 2007. Historically, when China devalued the Yuan last time in August 2015, BTC prices witnessed a plunge,” Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, told Gadgets 360. The bankruptcy of Chinese property giant Evergrande has also impacted the investor sentiment, leading to losses.
Ether, with a drop of 6.92 percent, is currently trading at $1,676 (roughly Rs. 1.39 lakh). Over the last day, the second largest cryptocurrency after Bitcoin lost $122 (roughly Rs. 10,130) pricewise.
The valuation of the crypto market, at present, stands very close to its trillion-dollar mark, which is psychologically significant for the investor community. In the last 24 hours, the crypto market cap dropped by 7.29 percent to stand at $1.05 trillion (roughly Rs. 87,24,334 crore), as per CoinMarketCap.
“The mass sell-off in the crypto market has led to a plunge in the crypto fear and greed index, which is down 13 points and has entered the fear zone after over five months, with a score of 37/100,” Chaturvedi noted.
Along with troubles coming from China, other factors are also impacting the crypto market.
Market participants, for example, are closely monitoring their movements in response to the recent release of the Federal Open Market Committee (FOMC) minutes.
“Bearish sentiment increased following the latest FOMC minutes, where the Federal Reserve hinted at further rate hikes,” the CoinDCX team told Gadgets 360.
In addition, the problematic launch of Shiba Inu’s Shiberium layer-2 blockchain this week, where $1.7 million (roughly Rs. 14 crore) worth of ETH got stuck on the Shibarium bridge, also contributed to the fear quotient shooting up among investors.
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