ISLAMABAD: The crashing cryptocurrency market took a breather on Sunday, with market capitalisation gaining 1.1 percent to reach $1.75 trillion.
As of 1430 hours GMT, the largest cryptocurrency Bitcoin’s price inched down by 0.11 percent to reach $35,520. With this decrease in price, the market capitalisation of the biggest crypto has reached $672.6 billion. Experts had warned previously that bitcoin might fall towards $30,000 due to concerns of pending interest rates hike and crypto ban proposal set in place by the Russians.
Ether, the world’s second-largest cryptocurrency by market capitalisation, is also in a world of pain, losing 0.27 percent over the past 24 hours to reach $2,458. With this massive decrease in price, the market capitalisation of ETH has reached $289.3 billion. ETH price has slumped to its lowest levels since September.
However, the XRP price went up by 3 percent to reach $0.616. The market capitalisation of XRP stands at $61.6 billion with this increase.
Likewise, Cardano (ADA) price made a gain of 0.62 percent to hit $1.11. Its market capitalisation has reached $36.6 billion with this increase.
Similar is the case with Dogecoin (DOGE) whose price gained 5.61 percent to reach $0.139. With this increase in price, the market capitalisation of DOGE has reached $18.5 billion.
A common investment case for cryptos is that they serve as a hedge against rising inflation as a result of quantitative easing by global central banks in order to tame Covid-19 disruption in the global economy, but experts are saying the risk is that a more hawkish Federal Reserve may take the hit on crypto assets. As the 10-year US Treasury yield spiked earlier this week, rising rates have caused investors to shed their positions in riskier assets. Yields move opposite to prices.
The crypto industry has faced several regulatory pushbacks in recent days, as scepticism towards the rapid growth of digital assets spreads across the globe. Besides the Chinese government banning all crypto-related activities, the US authorities are cracking down on several aspects of the market as well.
A Russian official has proposed banning the use and mining of virtual currencies on Russian soil, claiming it threatens monetary policy sovereignty and financial stability.
