By Chris King •
Updated: 04 Jun 2022 • 15:05
According to a report from Bloomberg, the value of Bitcoin, the world’s biggest and best-known cryptocurrency, has fallen more than 50 per cent since hitting a record high last November. This can only add further momentum to the recent meltdown that has taken place in cryptocurrencies.
“Margin positions being liquidated caused a wave of additional sell pressure, as assets that had been held as collateral were forcibly sold to pay for margin loans”, said Hayden Hughes, the CEO of Alpha Impact in Singapore.
Bitcoin fell to a new low of $34,042.78 today, Saturday, January 22, according to Coinbase. That equates to a drop of 7.2 per cent, before paring most of those losses.
Other digital assets, including Ethereum, also recorded losses today, down by 12 per cent. Meanwhile, Cardano and Solano both dropped by around 17 per cent.
This recent sharp decline of the world’s biggest cryptocurrencies has wiped out more than $600 billion in market value, and over $1 trillion from the aggregate crypto market.
“This marks the second-largest ever decline in dollar terms for both”, said a spokesperson for the Bespoke Investment Group, while Hayden Hughes from Alpha Impact commented, “I would expect it to take some time for a bottom to form, and for confidence to return, before expecting any sort of bullishness”.
The US Federal Reserve’s current intentions of reining in inflation have seemingly had a knock-on effect in the digital-asset space, rocking both cryptocurrencies and stocks.
It has been suggested by recent reports in the media that as early as next month, the Biden administration will seek to release an initial government-wide strategy for digital assets, and will ask federal agencies to assess the risks and opportunities that they pose, as reported by geo.tv.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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