In cryptocurrencies, Bitcoin plunged below back below $39,000, erasing gains sparked after US President Joe Biden’s executive order on crypto, as digital tokens fell with stocks on Thursday amid high inflation data and continued geopolitical uncertainty. Bitcoin price today were trading over 5% lower at $38,655. The world’s most popular and largest cryptocurrency is down about 16% in 2022 (year-to-date or YTD) so far.
US stocks and other risk-on assets were under pressure after US inflation jumped to a 40-year high and as the war in Ukraine continues to weigh on commodities. In recent years, Bitcoin has demonstrated a tendency to follow moves in the stock market.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency in terms of market capitalization, also plunged over 4% to $2,567. Dogecoin price declined more than 3% to $0.11 whereas Shiba Inu was trading 4% lower at $0.000022.
The performance of other digital tokens also tanked as Avalanche, Polygon, Cardano, Litecoin prices declined while Stellar, XRP, Uniswap, Solana, Polygon, Polkadot were trading with cuts in the range of 3-8%, however, Terra was higher with gains of about 2% over the last 24 hours.
Meanwhile, the global cryptocurrency market capitalisation remained below the $2 trillion mark at $1.81 trillion, more than 5% change in the last 24 hours, as per CoinGecko.
The recent volatility in cryptocurrencies has come amid a broader market selloff amid escalating geopolitical tensions due to the ongoing Russia-Ukraine crisis. The volatility has also been driven by investors recalibrating their portfolios to account for a more aggressive Fed, which is now expected to raise rates as many as seven times this year as it fights surging inflation.
(With inputs from agencies)
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