Bitcoin, Ethereum, BNB, Solana, Cardano and XRP suddenly plummet

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Bitcoin and cryptocurrency prices, including major ethereum coins, Binance’s BNB, solana, cardano and XRP, have fallen sharply, wiping nearly $200 billion from the combined crypto market in just 24 hours.

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The price of bitcoin has fallen 10% in the past 24 hours from below $40,000 to around $38,000, a level not seen since the summer of 2021. Meanwhile, the price of ethereum, BNB, Solana, Cardano and XRP all fell 7% and 11%.

The sudden selloff comes as stock markets around the world tumble, with the tech-heavy Nasdaq 100 NDAQ dropping into correction territory as investors grapple with the reality of a more hawkish Federal Reserve and rising interest rates. higher interest.

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Bitcoin price crashed below $39,000, driving down the price of major cryptocurrencies… [+] ethereum, BNB, solana, cardano and XRP.

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Ethereum, the second largest cryptocurrency after bitcoin, fell below the closely watched level of $3,000 per ether as Ethereum’s biggest rivals BNB, solana and cardano all fell sharply after realizing huge gains over the past year.

The crypto price crash has now seen an estimated $1.2 trillion cleared from the combined crypto market after hitting an all-time high of $3 trillion in November. The price of bitcoin is down nearly 50% from its peak of nearly $70,000 per bitcoin.

Investor nerves have been frayed in recent months by the looming prospect that the unprecedented pandemic-era stimulus from the Fed and other central banks may soon be removed. Earlier this month, markets were spooked by news that Fed officials had floated the idea of ​​shrinking the bank’s balance sheet alongside its planned interest rate hikes.

The Fed is being forced to act sooner and tougher than the market had expected due to soaring inflation which has already seen prices accelerate at a rate not seen in decades.

As crypto prices struggle, cryptocurrency funds saw a fifth straight week of outflows last week, according to a report from digital asset manager CoinShares. It found that total outflows during this period for the entire crypto market reached $532 million, the largest outflows since 2018.

“I think the main reason for this is that the market is spooked by the Federal Reserve rate hike this year, but when the stock market sees some relief, I expect strong upward pressure for bitcoin. and the broader market,” Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock, wrote in a note ahead of the latest crypto price crash.

Earlier Thursday, the Fed released its highly anticipated report on a potential digital dollar, a so-called central bank digital currency (CBDC) inspired by bitcoin and cryptocurrencies that governments and central banks around the world have experienced in recent years and some believe that it could upset the global financial system.

The report, written by the seven-member Fed Board of Governors, found that a digital dollar could “fundamentally change” the banking system and its relationship with the Federal Reserve, with a digital dollar capable of serving as a surrogate. “almost perfect” to commercial bank money.

Meanwhile, the sudden drop in crypto prices comes shortly after Russia is set to follow China in banning bitcoin and crypto, warning that crypto assets pose a threat to the country’s financial stability, the well-being of its citizens and its sovereignty in matters of monetary policy.

China’s complete crypto ban last year saw the country kick out those who use high-powered computers to secure blockchains in exchange for new coins and sent bitcoin and crypto prices skyrocketing. cryptography.

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The price of bitcoin has crashed after peaking at nearly $70,000 per bitcoin in November, with the… [+] combined price of ethereum, BNB, solana, cardano and XRP wiping over $1 trillion from the crypto market.

Coinbase

Russia’s central bank said the price of bitcoin and the rapid growth of cryptocurrencies have been driven by speculative demand and that cryptocurrencies exhibit the characteristics of a pyramid scheme, warning of potential bubbles in the market.

“The Bank of Russia has hinted at the possibility of a sweeping crypto ban many times before, so this recent development is hardly surprising,” said Anto Paroian, chief operating officer of the crypto hedge fund. -ARK36 currency, in email comments.

“It is important to note that the ban will also prohibit any cryptocurrency mining activity. As this would negatively affect bitcoin’s hashrate, some investors may wonder whether the ban, once enforced, could lead to selling pressure. increased on the price of this asset.”

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