Following Friday’s cryptocurrency market crisis, bitcoin fell another 5.6 percent on Saturday, falling below the $35,000 (€30,851) barrier for the first time since August. At 7.10 p.m. CET on Saturday, the world’s largest and best-known cryptocurrency fell to $34,448.94 (€30,365.53), down $1,878.27 (€1,655.63) from its previous closing.
Cryptocurrencies have continued to lose value across the board, with indexes still a sea of red on Sunday. Bitcoin’s price, on the other hand, was up 1.8 percent from the year’s low of $34,000 (€29,970). It has also lost over 40% of its value since November, when it hit a historic high of $68,992 (€60,895.79). According to coinmarketgap.com, it was still down over 17% week-on-week at lunchtime CET on Sunday, but had regained 1% to $35,678.42 (€31,449.28).
On Saturday, Ether, the cryptocurrency tied to the Ethereum blockchain network, fell 8.4% to $2,352.72 (€2,073.84), shedding $189.64 (€167.16) from its previous closing. It had regained roughly 2% to $2,491.81 (€2,196.44) by 12 p.m. CET on Sunday, but was still down 25% week-on-week. According to CoinGecko data, the entire market cap plummeted over 11% on Friday to $1.9 trillion (€1.6 trillion), down from an all-time high of $3.1 trillion (€2.7 trillion) in November.
What happened this week to cause a crypto crash?
The losses in the cryptocurrency market paralleled those in the traditional stock market, with the Nasdaq 100 losing approximately 15% on Friday. With nearly $60 billion (€53 billion) in losses, it was the worst week for the tech-heavy Nasdaq since the start of the COVID-19 epidemic. The possibility of a rate hike by the US Federal Reserve, in particular, is driving investors away from riskier assets like Bitcoin.
Furthermore, officials are becoming increasingly concerned about the role of cryptocurrencies in the economy, with fears that the digital currency will be further regulated. This week, the Spanish market regulator imposed strict regulations on trading platform advertising, and similar measures are being considered elsewhere in Europe, particularly in the United Kingdom. In other news, Russia’s Central Bank suggested a ban on cryptocurrency mining and use on Thursday, claiming it was a threat to the country’s “financial stability and monetary policy autonomy.”