The market prices of all major cryptocurrencies ranging from Bitcoin and Ethereum to Dogecoin and Shiba inu are witnessing a free fall since few days. Bitcoin alone has seen a downtrend of almost 8 percent in the last 24 hours. With a cryptocurrency weighing as heavy as Bitcoin, even 8 percent loss is a substantial loss in the value.
Bitcoin was trading at around $68,000 in November 2021, but today it touched $30,000 mark. The global crypto market whose estimated value in November was seen at $3 trillion has been left with only half the value i.e $1.5 trillion approximately.
Even currencies like Ether, the native currency of the Ethereum blockchain and also the second largest cryptocurrency, also depreciated more than 6% to reach $2,307 mark. Dogecoin, Shiba Inu, Solana, Polkadot, Cardano and many others also could not afford to stand against the market direction and plummeted over 10 to 20% in just 24 hours. Terra Luna has seen the biggest crash of its times by losing over 58% of its value. In past 7 days, Luna has shed 93% of its value.
Governments have already been warning investors about the risks involved in the Crypto world. The volatility of this sector has always been feared and listed on top by the major governments. This is also one of the reasons for the government trying to regulate this sector with utmost care.
The slump in the cryptocurrencies is attributed to aggressive US monetary tightening and surging inflation. Lack of liquidity is another reason that people are keeping away from volatile sectors.
