The cryptocurrency community continues to suffer heavy losses, as more cryproasset holders exit the market, plunging the total market value by -16.65%, as investors shed their investment from risk.
With investors taking flight out of major digital currencies such as Bitcoin, Ethereum, Cardano, Solana and Dogecoin, the cryptocurrency market lost a whopping $235.36 billion within 24 hours.
This was as a result of -33.8% dip in Solana, which recorded the highest loss when compared to other cryptoassets aforementioned, as sell off dragged its asking price down to $44.16.
Dogecoin, which once enjoyed massive marketing from the richest person in the world, Elon Musk, slumped to $0.07704 as at the time of filing this report, depreciating by -28.9% against Wednesday’s opening of $0.1084.
Following suit, Cardano, saw its market value hit a downward path to $0.4598, after a dip of -26.8%, having opened trading at $0.6288 per coin at the early hours of the previous day.
Ethereum wasn’t immune from the downward trajectory of the crypto market, shedding -18.2% of its market price due to sell off among its holders, to currently trade at $1,920.55, in contrast to the $2,342.75 it began trading a day before.
Bitcoin also travelled the same path, down by -9.42% to sell at $28,094.04, its lowest since December 2020, against the $31,016.18 it was priced at the opening of trade on Wednesday.
The dip in Bitcoin, Ethereum, Cardano, Solana, Dogecoin and other altecoins knocked the total cryptocurrency market value down to $1.17 trillion from $1.41 trillion, according to prices tracked on crypto aggregator, Coinmarketcap.
Read also :UK govt announces plan to regulate cryptocurrency, amid bitcoin crash
Where are investors selling off bitcoin, other cryptocurrencies going?
The heavy losses in these crypto heavyweights reflects the decentralised financial market is losing its attraction as a safe haven to hedge current rising inflation in global market.
Some funds exiting the crypto market are finding their way into traditional assets like U.S bonds, as investors seek alternative ways to hide and grow their funds against inflation, following increase in interest rates.
The U.S government had been battling inflationary pressure by raising their interest rates, which has seen yield on its 10-year Treasury note rise as high as 3.17% this week, its highest level since 2018.
While in Nigeria, where cryptocurrency trading is banned, investors have been bullish in the stock market, hence, the equity market posting a 13-year high on Wednesday.
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