ISLAMABAD: The cryptocurrency market continued with a bearish trend on Sunday, with market capitalisation shedding 2.1 percent to reach $2.06 trillion.
As of 1440 hours GMT, the largest cryptocurrency Bitcoin’s price went down by 0.34 percent to $41,720. With this decrease in price, the market capitalisation of the biggest crypto has reached $789.5 billion.
The world’s biggest digital asset fell for a seventh straight day, marking its longest losing streak since 2018, as the crypto market contends with new strains of Covid-19, inflation and a hawkish turn of the US Fed. The steep sell-off, attributed to these factors, sent Bitcoin plummeting to $40,800 at one point, marking a daily decline of 2.3%.
Ether, the world’s second-largest cryptocurrency by market capitalisation, tumbled by 2.44 percent to reach $3,112. With this decrease in price, the market capitalisation of ETH has reached $366.2 billion.
On the other hand, XRP price went down by 2.27 percent to reach $0.748. The market capitalisation of XRP stands at $74.8 billion with this decrease.
Similarly, Cardano (ADA) price lowered by 5.20 percent to hit $1.17. Its market capitalisation has reached $38.4 billion with this decrease.
Following suit, Dogecoin (DOGE) price remained on the downward slide and shed 3.14 percent to reach $0.151. With this decrease in price, the market capitalisation of DOGE has reached $20 billion.
Bitcoin’s stretch of losses became the longest recorded since the downturn of July 30 through August 4, 2018. Back then, the digital currency slid 17%, with further losses eventually seeing bitcoin tokens flatten out at $3,200 before finding support.
The latest decline in the cryptocurrency market comes as investors’ appetite for riskier assets is sapped due to signals that the US Federal Reserve is beginning discussions on whether to take more aggressive steps to tackle an inflation rate now at its highest in almost four decades. Bitcoin has reportedly benefited in recent years from the Fed’s ultra-loose, emergency monetary policy since the coronavirus hit the economy, the reversal of which is seen as a new problem for bitcoin.
The latest retreat is attributed to a sudden drop in the global computing power of the Bitcoin network in the wake of Kazakhstan’s internet shutdown, implemented to quell the current uprising. Kazakhstan became home for a growing number of crypto-mining operations after China ordered a crackdown on the practice, ousting most of its crypto miners.
Cryptocurrencies have also been under pressure after minutes from the latest US Federal Reserve meeting, published on Wednesday, flagged the chance of earlier- and faster-than-expected rate hikes. The news has inevitably sapped investor appetite for riskier assets.
