NEW DELHI: Bitcoin, along with other digital cryptocurrencies, plummeted to its lowest levels on Saturday, and the ongoing crash has wiped more than $1 trillion (about 74 lakh crore) from the value of the global crypto market. ,
Bitcoin hovered around $35,000 per coin and the largest digital asset by market value has lost more than 40 percent since its November 2021 peak.
Bitcoin hit an all-time high of around $69,000 in November. The collapse of cryptocurrencies came as the US Federal Reserve raised the possibility of a rate hike back in March and the withdrawal of market stimulus.
Other digital currencies, Ethereum, Finance Coin, and Cardano also experienced similar crashes. Solana, Dogecoin, and Shiba Inu also saw massive falls.
bitcoin crashed below $36,000, a level below which “there isn’t much support until the $30,000 level,” Edward Moya, senior market analyst at Oanda, said in a note.
Bitcoin’s drop since November has wiped out its more than $600 billion market value. Crypto assets like Bitcoin have evolved from an obscure asset class with few users to an integral part of the digital asset revolution, raising concerns about financial stability.
Given their volatility and relatively high valuations, according to IMF research, the surge in cryptocurrency movements could soon pose risks to financial stability, particularly in countries with widespread cryptocurrency adoption.
Therefore, it is time to adopt a comprehensive and coordinated global regulatory framework to guide national regulation and supervision and mitigate the risks to financial stability posed by the crypto ecosystem.
The market value of these new assets rose to nearly $3 trillion in November from $620 billion in 2017, with growing popularity among retail and institutional investors, despite high volatility.