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Crypto prices plummet: Bitcoin sinks below $39,000, Ethereum crashes 14% lower

Bitcoin and other top cryptocurrencies continued to fall all Friday Crypto prices plummet, following a slowdown in overnight trading. The world’s largest digital currency, Bitcoin, was trading at $ 38,356 on Friday afternoon – down 11 percent in the last 24 hours, according to CoinMarketCap. Bitcoin has dropped by more than 17 percent a year so far. Many other popular cryptocurrencies are very good, as the crypto markets join other U.S. financial markets.

Markets continue to expect the Fed to raise interest rates, a move that hampers stock growth and crypto currencies. Expectations of rising rates also hurt the bond prices, which went in the opposite direction. And crypto traders may be concerned about Thursday’s statements from a central Russian bank about a proposed ban on cryptocurrencies.

The price of Ethereum fell by about 14 percent, down to $ 2,777 on Friday afternoon. The world’s second-largest cryptocurrency reached more than $ 4,800 recently in November but has continued to fall over the past few months. It has dropped by about 25 percent so far in 2022.

Crypto prices plummet: Bitcoin sinks below $39,000, Ethereum crashes 14% lower

Crypto prices plummet

On Friday afternoon, Cardano was trading at $ 1.20 – down 14.1 percent. Solana fell 12 percent, to $ 124.29.

Meanwhile, the popular memecoin Dogecoin traded at $ 0.1513, up from 8.8 percent.

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Some major cryptocurrencies that have fallen in the last 24 hours include:

  • Binance Coin – down 10.3 percent
  • Polkadot – down 12.7 percent
  • XRP – 11.6 percent down
  • Avalanche – down 15.3 percent

Bitcoin prices have been declining for months

The price of Bitcoin has come under a lot of pressure since the beginning of the Federal Reserve meeting in November, when the central bank announced it would begin reducing its bond purchases, reducing its stimulus in the financial system.

The ride of the Bitcoin roller coaster last year

The price of Bitcoin has risen and plummeted in the last year or so, doubling its value in early 2021 and losing everything, rising sharply over time in 2021.

That decline continued between December and January. After rising more than $ 51,000 at the end of December, digital currency fell to $ 41,000 in early January and spent the last few weeks hovering around $ 40,000 in the estimated $ 42,000 range. This recent decline has seen cryptocurrency trading below the $ 40,000 level for the first time since August.

On Thursday, the Federal Reserve released its 40-page paper examining the creation of a “digital dollar,” a cryptocurrency version of the US dollar backed by a major bank. Although the Fed has not yet taken a stand on currency formation yet, the paper examines the pros and cons of doing so. Now the Fed wants public comment on this topic.

Fed intensification plans for rising inflation

At its December meeting, the Fed announced it was stepping up its taper, buying fewer bonds than it had predicted in November. The new speed means the Fed will stop buying bonds in March 2022.

From there, the Fed said it would eventually raise interest rates, as conditions allowed.

“With inflation exceeding 2 percent over a period of time, the committee expects that it will be appropriate to maintain this target list until labor market conditions reach levels consistent with the Committee’s assessment of high employment,” the Federal Open Market Committee said in a statement. .

Although the price of Bitcoin reached $ 68,990.90 in early November, the value of cryptocurrency has declined steadily since then. However, Bitcoin remains at the top of the list of the most important cryptocurrensets with the full market capitalization.

sources

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