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Cryptocurrencies Slide As Bitcoin Drops 7% And Ether Falls 8% In 24 Hours


Cryptocurrencies Slide As Bitcoin Drops 7% And Ether Falls 8% In 24 Hours
On Thursday night, bitcoin and ether prices plummeted, wiping out over $150 billion from the cryptocurrency market.
According to CoinDesk, Bitcoin has declined roughly 7 per cent in the previous 24 hours and has reached a low of $38,287. According to CoinDesk data, it was last trading at $39,010 at 4:43 a.m. ET.
In the previous 24 hours, Ether, the second-largest cryptocurrency by market capitalization, has dropped over 8 per cent. According to CoinDesk, it was trading at $2,878 as of 4:43 a.m. ET, after sliding as low as $2,809.51 in the previous 24 hours.
According to Coinmarketcap.com, the entire cryptocurrency market has lost over $147 billion in the last 24 hours.
Cryptocurrency losses follow Thursday's losses on Wall Street. The Nasdaq fell nearly 5% this week, and the S&P 500 has now lost three weeks in a row.
Rising rates have pushed investors to sell riskier assets after the 10-year US Treasury yield rose earlier this week. Yields move in the opposite direction of prices.
The Federal Reserve has also stated that it intends to start shrinking its balance sheet, tapering bonds, and hiking interest rates.
The typical investment thesis for bitcoin is that it acts as a hedge against growing inflation as a result of government stimulus, but analysts warn that a more hawkish Federal Reserve might stifle bitcoin's growth.
Senior Market Analyst Edward Moya of foreign exchange trading firm Oanda said it was "a little disheartening" that bitcoin didn't react more positively to the reversal in Treasury yields as yields fell later in the week.
Since November, bitcoin values have plummeted by more than 40% from their all-time high of almost $69,000.
Some experts predict that the crypto sector will soon enter a bear market, owing to increased regulatory scrutiny and volatile price movements that have harmed bitcoin's chances.
Cryptocurrencies are also being targeted by regulators. China has outright banned any cryptocurrency-related activity, and the US government is likewise cracking down on certain areas of the business.
In a Thursday note, Oanda's Moya forecasted that bitcoin would fall below $40,000 as Russia's central bank recommended a ban on cryptocurrency use and mining on Russian soil, stating that the digital currency threatens "financial stability and monetary policy autonomy."
He pointed out that Russia is one of the top three countries for bitcoin mining.