New Delhi: Prices of Bitcoin, Ethereum and other Cryptocurrency have dropped significantly. While, Bitcoin has gone down by 0.91 per cent, Ethereum fell by 1.03 per cent, according to details on worldcoinindex website.Also Read – DGGI Raids Major Cryptocurrency Service Providers, Detects Massive Tax Evasion Of Rs 70Cr: Report
Price of Terra plunged by 5.69 per cent, Polygon dropped by 6.69 per cent, Solana fell by 2.33 per cent, Ripple dropped by 0.47 per cent, Caradno fell by 0.67 per cent, Binancecoin dropped by 2.08 per cent, Shiba Inu fell by 1.53 per cent, Decentraland dropped by 3.41 per cent, Polkadot fell by 3.26 per cent, Litecoin 0.97 per cent, Gala dropped by 0.97 per cent, Tether down by 0.03 per cent, as per the details on worldcoinindex. Also Read – Violators of New Cryptocurrency Guidelines Could Be Fined Rs 20 Crore Or Get Jail Term: Report
Bitcoin and other cryptocurrencies fell sharply last week, another sign that investors were pulling back from riskier bets after the week’s stock-market selloff, as per an IANS report. Also Read – Cryptocurrency: No Proposal To Recognise Bitcoin As Currency in India, Says Centre In Parliament
Disquiet in the stock market over the new Omicron variant of Covid-19 and the Federal Reserve’s response to inflation might have played a role, the IANS report said.
Another possible factor accelerating the bitcoin selloff was the unwinding of heavily leveraged crypto derivatives, said Noelle Acheson, head of market insights at cryptolender Genesis Global Trading. She pointed to a large sell order that might have triggered margin calls and liquidations for investors, the IANS report added.
Higher rates make holding speculative assets such as bitcoin less attractive. When the Federal Reserve raised rates in 2017 and 2018, bitcoin prices fell dramatically, referred to among crypto aficionados as a bitcoin winter. The coin took off again during the pandemic. Bitcoin hit an all-time high on November 9 of USD 67,802.