Bitcoin, Ether Lead Crypto Market Crash as US Federal Reserve Validates Hike in Interest Rates

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Two major events in the cryp­tocur­ren­cy space have rocked Bit­coin’s val­ue down to a three-month low as the entire mar­ket wit­nessed a cas­cad­ing crash. At the time of writ­ing, Bit­coin is val­ued at $43,168 (rough­ly Rs. 32.1 lakh), down by over 7 per­cent over the past 24 hours on glob­al exchanges. On Indi­an exchanges like Coin­Switch Kuber, the price of the most pop­u­lar cryp­tocur­ren­cy stands at Rs. 34.92 lakh, down by 6.17 per­cent over the past 24 hours.

The big slump occurred as the US Fed­er­al Reserve indi­cat­ed it could move up its timetable for rais­ing inter­est rates to mid-March. The US Fed­er­al Reserve is essen­tial­ly going to stop print­ing mon­ey and make it more expen­sive to bor­row in order to steady the econ­o­my and keep ris­ing infla­tion in check. Mean­while, Kaza­khstan, the coun­try which accounts for a large 18 per­cent of the Bit­coin net­work’s hash activ­i­ty, wit­nessed a nation­wide Inter­net shut­down, caus­ing BTC’s hashrate to drop by 13.4 per­cent — reflect­ing in a sharp fall in value.

Ether, the sec­ond-largest cryp­tocur­ren­cy by mar­ket cap­i­tal­i­sa­tion saw a sub­stan­tial drop as well. The Ethereum-based cryp­tocur­ren­cy wit­nessed a plunge of 8.3 per­cent over the past 24 hours after a healthy start to the year. At the time of pub­lish­ing, Ether is val­ued at $3,759 (rough­ly Rs. 2.79 lakh) on Coin­Switch Kuber while val­ues on glob­al exchanges see the cryp­to pegged low­er at $3,446 (rough­ly Rs. 2.56 lakh), where the coin saw a steep­er drop of 9.73 per­cent over the past 24 hours. The dip sees Ether’s per­for­mance improve mar­gin­al­ly but still down 6.8 per­cent in val­ue over the past week.

Gad­gets 360’s cryp­tocur­ren­cy price track­er reveals a bad day for the entire mar­ket as sta­ble coin appears to be the only cryp­to assets to have gained in val­ue. Rip­ple, Car­dano, Poly­gon, Lite­coin, Chain­link, and Polka­dot all wit­nessed drops in val­ue, while Teth­er, and USDC rose in value.

Meme coins haven’t been spared by the crash either. Doge­coin is down 6.86 per­cent in 24 hours to be val­ued at $0.17 (rough­ly Rs. 12.67). Mean­while, Shi­ba Inu is down 7.61 per­cent to be val­ued at $0.000032 (rough­ly Rs. 0.002417). SHIB’s val­ue has dropped by 10.2 per­cent in the past week, while Doge­coin is down by 6.9 percent.

As per CoinGecko, Bit­coin’s val­ue has dropped by over 7 per­cent over the past week, even though the cryp­tocur­ren­cy is up by more than 26 per­cent year-on-date.

Mean­while, a mem­ber of Indi­a’s Mon­e­tary Pol­i­cy Com­mit­tee (MPC) has giv­en Indi­an cryp­to investors some respite from rumours sug­gest­ing that the cryp­to sec­tor could be total­ly pro­hib­it­ed in the coun­try. Ashima Goy­al, in a recent inter­view with the Press Trust of India, report­ed­ly said that impos­ing a blan­ket ban on cryp­to-relat­ed activ­i­ties is dif­fi­cult to imple­ment. The main rea­son why India will not legalise any cryp­tocur­ren­cy as legal ten­der, as per Goy­al, is the pos­si­bil­i­ty of it being mis­used for unlaw­ful activities.


Inter­est­ed in cryp­tocur­ren­cy? We dis­cuss all things cryp­to with WazirX CEO Nis­chal Shet­ty and Week­end­In­vest­ing founder Alok Jain on Orbital, the Gad­gets 360 pod­cast. Orbital is avail­able on Apple Pod­casts, Google Pod­casts, Spo­ti­fy, Ama­zon Music and wher­ev­er you get your podcasts.

Cryp­tocur­ren­cy is an unreg­u­lat­ed dig­i­tal cur­ren­cy, not a legal ten­der and sub­ject to mar­ket risks. The infor­ma­tion pro­vid­ed in the arti­cle is not intend­ed to be and does not con­sti­tute finan­cial advice, trad­ing advice or any oth­er advice or rec­om­men­da­tion of any sort offered or endorsed by NDTV. NDTV shall not be respon­si­ble for any loss aris­ing from any invest­ment based on any per­ceived rec­om­men­da­tion, fore­cast or any oth­er infor­ma­tion con­tained in the article.

Catch the lat­est from the Con­sumer Elec­tron­ics Show on Gad­gets 360, at our CES 2022 hub.

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