Bitcoin price crash: Crypto plunges 9% as billions are wiped from the market

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The cryptocurrency market experienced a dramatic crash, wiping out 9% of the market.

Bitcoin is down 8.8% in the past 24 hours. Many other coins suffered even more, with Ethereum falling 11.1%.

This happened amid a drastic increase in trading volumes, presumably as people rushed to get rid of their rapidly depreciating cryptocurrencies. Market volume increased by 113%, according to monitoring website CoinMarketCap.

The recent falls mean bitcoin has fallen comfortably below the $40,000 mark that some analysts had seen as an important psychological indication of the severity of any decline.

This is just the latest indication that growing fears of a “crypto winter” may be coming true. Bitcoin has already had its worst start to the year and passed a number of important milestones.

The poor performance contrasts sharply with the record year-end performance. Bitcoin hit an all-time high in November — touching almost $70,000 — but is now 44% below that all-time high.

Some proponents had hoped that bitcoin and other cryptocurrencies might rebound as a hedge against high inflation. But even as inflation continues to rise, the price has struggled, falling further and further.

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