Cryptocurrency prices today continued the downward trend with Bitcoin falling below the $35,000 level. Bitcoin dropped the most since January as the rout in financial markets deepened in the wake of increasing concern of recession. The global crypto market’s value today slipped over 4.5% in the past 24 hours to $1.66 trillion, according to CoinGecko.
Bitcoin slumped 3.8% trading at $34,508.96 in the early hours today, raising concern that the slide risks pushing the largest cryptocurrency out of the range it has traded within much of the year. Terra witnessed a massive drop at 13.5% during the early hours on Sunday trading at $65.58.
Additionally, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also plunged 4.8% to $2,545.29. Meanwhile, dogecoin price today was trading about 1.2% lower at $0.12 whereas Shiba Inu also fell over 4.9% to $0.00001887.
It is important to note that cryptocurrencies have been weighed down by the overall risk aversion that has swept though global markets as central banks battle inflation while trying to temper the stimulus added during the Covid pandemic. Bitcoin is down more than 20% so far this year.
Meanwhile, earlier this week on Friday, Bitcoin fell about 1% to $36,077, touching the lowest level since February and closed down around 6.3% since last Friday. The digital asset has been meandering between roughly $33,000 and the $48,000 it came into the year. It last traded below $32,000 in July. Ether, Avalanche and Solana also declined this week.
About $475 million in long Bitcoin positions were liquidated over a 24-hours period, according to data from Coinglass. Bitcoin fell around 8% on Thursday, the biggest one-day drop since January.
Bitcoin has been largely trading in tandem with tech stocks — both the coin and the tech-centric Nasdaq 100 hit all-time highs in November and have been on a volatile downward path since. The Nasdaq 100 fell for a fifth consecutive week.
(With inputs from agencies)