Global Crypto Market Suffers $1 Trillion Loss From Bitcoin Crash

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Bitcoin, along with other digital cryptocurrencies, fell to all-time lows on Saturday, and the continued slump wiped over $1 trillion from the global crypto market value.

Bitcoin was hovering at $35,000 per coin and the largest digital asset by market value has lost over 40% since hitting its peak in November 2021.

Bitcoin hit an all-time high of around $69,000 in November.

The crypto crash came as the US Federal Reserve raised the possibility of raising interest rates as early as March and pulling stimulus from the market.

Other digital currencies, Ethereum, Finance Coin and Cardano have also experienced similar meltdowns. Solana, Dogecoin, and Shiba Inu also saw massive declines.

Bitcoin fell below $36,000, a level below which “there’s not much support until the $30,000 level,” Edward Moya, senior market analyst at Oanda, said in a statement. note.

Bitcoin’s decline since November has wiped out over $600 billion of its market value.

Crypto assets such as Bitcoin have gone from being an obscure asset class with few users to becoming an integral part of the digital asset revolution, raising financial stability concerns.

Given their volatility and relatively high valuations, the increased co-movement of cryptocurrencies could soon pose risks to financial stability, especially in countries with widespread crypto adoption, according to research from the IMF.

It is therefore time to adopt a comprehensive and coordinated global regulatory framework to guide domestic regulation and supervision and mitigate risks to financial stability arising from the crypto ecosystem.

The market value of these new assets has risen from $620 billion in 2017 to nearly $3 trillion in November, thanks to growing popularity among retail and institutional investors, despite high volatility.

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(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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