Cryptocurrency: Bitcoin was trading at $35,000 per coin, on Saturday, down 50 per cent from its peak in November 2021. #bitcoincrash was trending on Twitter following the meltdown of the largest crypto coin.
New Delhi: Global crypto markets have lost $1 trillion of their values in the past few months. According to a report by IANS, Bitcoin, along with other digital cryptocurrencies, crashed to its lowest level on Saturday. The digital token was trading at $35,000 per coin, on Saturday down 50 per cent from its peak in November 2021. #bitcoincrash was trending on Twitter following the meltdown of the largest crypto coin.
n November 2021, Bitcoin hit its all-time high of $69,000 per coin. Other cryptocurrencies including Ethereum, Binance Coin and Cordano have also faced similar meltdowns. The Ethereum-killer, Solana, has also lost a big chunk of its value.
The report quoted Edward Moya, Senior Analyst at Oanda, saying that there is no major support to Bitcoin till $30,000 per coin. This means that the value of the coin is expected to fall deeper in the coming days.
Reason Of Bitcoin Crash: Possibility Of Interest Rate Hike By Fed
The report also added that the crypto crash came as the US Federal Reserve raised the possibility of boosting interest rates as soon as March and withdrawing stimulus from the market. The stimulus packages were announced by the central banks across the globe to support the households during the pandemic.
Interestingly, Bitcoin’s decline since its peak in November has wiped out more than $600 billion in its market value. Crypto assets are increasingly posing a larger threat to the stability of the global markets, according to the report.
Time To Adopt A Comprehensive Framework?
According to research by IMF, the increased co-movement in cryptocurrencies could soon pose risks to financial stability especially in countries with widespread crypto adoption.
It added, that countries should adopt a comprehensive, coordinated global regulatory framework to guide national regulation and supervision and mitigate the financial stability risks stemming from the crypto ecosystem.
The market value of these novel assets rose to nearly $3 trillion in November from $620 billion in 2017. This was due to soaring popularity among retail and institutional investors alike, despite the high volatility in these assets.
