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

Following a 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.

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.

Yellow Star
Yellow Star

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