The cryptocurrency markets have crashed in the last 24 hours. According to data from CoinMarketCap, the global market cap has decreased by 5.28 per cent over the past 24 hours to $1.20 trillion as of 7:30 a.m. IST.
Bitcoin is trading at $28,952 and is down 2.40 per cent. Ethereum witnessed a significant downward trend and is currently trading at $1,752 following a 10 per cent decline. The BNB token had a massive 8.55 per cent decline.
Solana plummeted by a staggering 12.91 per cent. The ADA token demonstrated a downward trend of 9.91 per cent.
Overall, in the past 24 hours, the majority of the leading cryptocurrencies have lost ground.
Shivam Thakral, CEO, BuyUcoin told Business Today, “The crypto bear market is in for a long haul as the overall crypto market cap fell by over 5 per cent. Bitcoin is struggling to cross the $30k mark and Ether is under a lot of pressure after slipping below the $1,700 mark. Layer 1 coins like Solana and Avalanche have suffered double-digit losses and the total value locked in the Defi ecosystem witnessed a significant drop.”
Thakral also stressed that cryptocurrencies are not the only asset class that has gone for a toss in recent times. He said, “It is important to note that crypto is not the only market in a bear phase, some of the most high-paced tech stocks have faced a major downward trend which is a result of several macroeconomic factors putting pressure on the traditional and crypto market across the globe.”
Speaking about the future prospects, he said, “The markets are expected to remain choppy and investors should hold onto their position.”
Sharat Chandra, crypto expert and vice president, research and strategy at EarthID said, “Crypto assets have briefly decoupled from rising stock prices. Despite the short-term volatility, the 90-day co-relation between Bitcoin and S&P 500 is at an all-time high. Altcoins have a higher risk profile; therefore, altcoins performing poorly against Bitcoin indicate lower risk appetite among investors in a bear market.”
The CoinDCX research team highlighted the fact that a top official in the US has spoken in favour of crypto, which attests to the integral role that crypto might play in the future of finance.
They said, “Amidst market uncertainties, the US Federal Reserve’s Vice Chair, Lael Brainard has reinvigorated confidence in crypto, seeing the necessity of a central bank digital currency of the US dollar and its position to coexist with stablecoins. Even going so far as to put a 5-year timeframe to the digital dollar’s launch, Brainard expounds on the criticality of embracing digital currency and the risks of not engaging with the future digital financial system. Despite the bearish crypto market, the backing and belief in the value and importance of digital assets from the world’s largest economy attest to the central role that crypto will continue to play in the future of finance.”
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