As bitcoin prices continue to plummet, the wider crypto market is in the red, shedding over $1 trillion. It’s the biggest loss in market history, and the drop has hit stocks in the crypto-adjacent sector as well. Coinbase, a digital trading platform, topped out at $357 a share in early November. The stock has since dropped to $174, the lowest point since late spring 2018.
Although the price of bitcoin has been steadily increasing over the past few months, the decline is still too large to ignore. The US Federal Reserve warned that it would take aggressive action to reverse its stimulus. This is already sending shockwaves across the entire cryptocurrency market. If the Fed becomes more aggressive, the crypto drawback could persist for weeks. Meanwhile, Ethereum shed its losses and is now trading at $3,500. However, experts are warning that it could remain in the red for the time being.
The fall of the Bitcoin price has caused global cryptocurrency markets to plunge. The first-largest cryptocurrency by market capitalization, Ethereum, is down over 4.5 percent to $3,436. Other notable losses include USDC, XRP, and Terra, which fell over six and five percent, respectively. However, BNB token is down 6.21 per cent. In the next few days, the market may continue to recover as investors seek safer investments.
The latest news has led to speculation that bitcoin is going to hit the $22,000 to $24,000 range. In fact, there’s a chance that the price of the digital asset might remain in the $20k-$40k range for a while. The Chu, a digital asset investor at Kinetic Capital, sees a selling opportunity ahead. However, for now, it is likely to stay in the $20k-$40k range.
Earlier this month, bitcoin’s price plummeted by ten percent. Since then, it’s dropped 20 percent. The total market value has lost more than $1 trillion since November. It was trading at $34,000 on Monday and is now down 45% from its mid-April high of $67,582 in early November. Another popular cryptocurrency, Ethereum, lost about 30 per cent in a week, while bitcoin fell nearly half of its price.
Coins that have been hit by the recent bitcoin price fall include Shiba Inu and Dogecoin. The latter’s price fell by more than three per cent, while Dogecoin’s declined by about a fifth. In addition to bitcoin, Ethereum and Dogecoin have also suffered. However, these three digital assets are not the only ones falling in value. As of this writing, the total cryptocurrency market cap has fallen by more than $178 billion.