#BitcoinCrash: Crypto Prices Plummet For Ether, Shiba, And Many More

  • Bitcoin fell by 6%, biggest drop after December weekend crash
  • Shiba Inu and other meme coins also experienced a similar drop
  • NDTV remarked that Ether led the market crash with a 9.73% fall on global exchanges
  • Coins like Binance’s BNB, Solana, Litecoin, XRP, Cardano also fell between 3% and 5%

Following a brief period low volatility, Bitcoin, Ethereum and many other cryptocurrencies are now all undergoing a major fall in value. Bitcoin is down almost 40% from its all-time high of $69,000, reached in November last year. This bearish sentiment was reflected in the stock markets as well, after the Federal Reserve released the minutes of its December meeting, as reported by Forbes.

Plans for hiking interest rates and shrinking the Fed’s $8.3 trillion balance sheet were discussed. As per the meeting summary, “Almost all participants agreed that it would likely be appropriate to initiate balance sheet runoff at some point after the first increase in the target range for the federal funds rate.”

Bitcoin, taking up the lion’s share of value in the crypto market, lost $3,000, i.e., a drop from over $47,000 to under $44,000, in merely a few hour’s time. It’s value dropped as much as 6% to $43,451. According to Mint, this is lowest the digital currency’s value has dropped to after the December weekend flash crash, when its value touched $42,296 at the start of the month.

Forbes notes that Binance (BNB), Solana, Ethereum, Cardano, Litecoin, EOS and XRP, and a number of other cryptocurrencies also fell between 3% and 5%, as the crypto market lost billions from its total value of $2.1 trillion market cap. Tokens of popular DeFi applications (like Uniswap and Aave,) also saw a similar decline in value.

This change comes during a volatile and inflationary period in a post quarantine environment, where spiking inflation across countries is compelling central banks to tighten monetary policies and raise borrowing rates.

Looking back, Bitcoin has shown a 500% increase in value since the end of 2019, perhaps partly in the wake of the stimulus measures placed by governments during the Covid pandemic, Mint observed. And now, in anticipation of stricter monetary policies, perhaps it would be right to say that the upward crypto trend is witnessing an inevitable reversal.

Do you believe that this bearish crypto market sentiment will show yet another rise anytime soon? Comment down below to share your thoughts.

Sneh Dokania is an Economics major student with an inquisitive disposition seeking to articulate facts, information and news stories in a candid manner on Clout News.

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