On Saturday, the price of Bitcoin, the world’s most popular cryptocurrency, plummeted by more than 50% from its all-time high as traders unloaded assets for cash.
Bitcoin dropped to $34, 243 (according to Binance) before regaining control of the $35,000 mark in the early hours of Sunday, Nigerian time. On November 8, 2021, Bitcoin reached an all-time high of $67,566 at a time when bullish investors anticipated we’d approach $100,000.
The price of bitcoin has plummeted as a result of the US Federal Reserve’s plan to hike interest rates at least three times, causing the market’s most leveraged assets to be liquidated.
Bitcoin isn’t the only cryptocurrency that has lost a lot of value. Ethereum, the second most valuable cryptocurrency, has dropped from an all-time high of $4,812 to below $2,400 as traders ramped up their sell-offs.
BNB, Cardona, Solana, and XRP, which make up the top ten most capitalized cryptocurrencies in the world, have also been hit by the sell-offs.
Cryptocurrency market valuation has dropped by almost 43% from November 2021, from $2.9 trillion to around $1.65 trillion now.
This year, the value of cryptocurrency has been wiped away by over a trillion dollars.
Despite the cryptocurrency crash, stable coins have remained “stable” as investors liquidate their bitcoin and altcoin positions in favor of stable coins pegged to the dollar. The market capitalization of Tether, the world’s largest stable coin, has reached an all-time high of $78 billion.