The price of bitcoin has dropped by almost ten percent in 24 hours to $29,844, a loss of nearly eleven percent. Ethereum has dropped by five per cent, so the market cap of all cryptocurrencies is down over one trillion dollars. After the news about Tesla, the Solana coin dropped in value. This is a very negative sign for Solana as its price is highly correlated with the value of the Tesla.
Bitcoin price falls by 11% in 24 hours to $29,844
On Monday, the world’s largest cryptocurrency, bitcoin, fell by 11% in just one day to $29,844. The plunge was accompanied by a sell-off in traditional financial markets due to the Federal Reserve’s aggressive monetary policy aimed at combating inflation. The recent sell-off has put the flagship cryptocurrency at its lowest level since July 2021, falling 55% from its all-time high of $69,000 set in November 2017. The price of other top-10 cryptocurrencies also dipped double-digit percentages.
The US Federal Reserve has just pushed its key lending rate higher by half a percentage point, raising concerns about rising borrowing costs and inflation. In addition, investors were concerned about the impact of the Ukraine conflict on the world economy. In the last year, Bitcoin became legal tender in two countries. In El Salvador, it is used in all transactions, while the Central African Republic recently approved its use alongside the US dollar. However, the International Monetary Fund (IMF) has urged these countries to reverse their decision.
Ethereum price falls by 5 per cent
The cryptocurrency market is experiencing some volatility as prices of Bitcoin and Ethereum have fallen significantly in recent days. Bitcoin dropped below $36,600 in early Thursday trading and Ethereum fell below $2000. While Bitcoin had rallied since its late January low, it has now resumed its downward trajectory. Ethereum is currently trading at around $2600, down almost 5 percent from its November high and down more than 30 per cent year to date. Its recent price decline comes amid concerns about inflation and geopolitical uncertainty. EarthID’s VP of research and strategy, Sharat Chandra, believes that prices will fall further in the coming days.
Bitcoin and Ethereum are both affected by the Federal Reserve’s pivot from emergency support. The Fed’s move away from emergency support has spooked investors who bought the currency during the pandemic. Meanwhile, the price of Ethereum has fallen by 15 percent over the past 24 hours and more than 35 per cent since the start of 2019.
Solana drops in value after Tesla announcement
The news of Tesla’s upcoming electric car production has impacted many cryptocurrencies, including Solana. Bitcoin has plunged by nearly 50% in the past month, and major cryptocurrencies like Solana have dropped by nearly as much. Solana’s market cap has dropped by as much as 11.7% over the past 24 hours. The cryptocurrency is currently valued at $12 billion. While bitcoin is seen as the digital gold, Solana is a utility coin designed to be used for high-speed, low-cost transactions. It is expected to outperform Bitcoin by 2022.
Developers have been flocking to Solana to build apps. The blockchain can process more than 2,000 transactions per second. Solana’s developer community is growing, while Bitcoin’s developer community has stagnated. Solana Ventures, an investor in the crypto space, recently announced $250 million in venture capital funds. The funds will be used to develop games, finance projects, and NFT marketplaces. Phantom, the Solana wallet, has 1.8 million monthly active users.
Global cryptocurrency market capitalization falls by 5 per cent in 24 hours
The global cryptocurrency market is suffering as the price of Bitcoin dropped by nearly eight percent in just 24 hours. This plunge is a significant disappointment for cryptocurrency enthusiasts as the crypto market has seen a steep decline in just two months. The value of all digital assets was valued at $1.6 trillion at the start of November. But many people believe that cryptocurrency will revolutionize finance. In fact, many people have been buying cryptocurrency as speculative bets.
However, many analysts believe that the market will eventually rise to $1-2 trillion. This is because cryptocurrency has numerous uses in a variety of sectors. Experts say that there will not be one “supreme” digital currency. While Bitcoin and Ethereum currently command the largest market cap, there are more than 600 altcoins with a market value of over $100 million. As such, the market has a wide range of uses.