The price of Bitcoin continued to expand its decline as it plunged below $ 42,000 to levels not seen since September. The world’s largest cryptocurrency has lost more than $ 27,000 or 40% since it hit a record high of nearly $ 69,000 in November 2021. The digital token has fallen 4.9% to $ 41,008 .
Meanwhile, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, has fallen 9% to its lowest level since September 30. Other digital tokens, including Binance Coin, Solana, Cardano, and XRP, are down more than 10% in the past seven days. The global crypto market capitalization has fallen more than 4% to $ 2.08 trillion, according to CoinGecko.
Bitcoin gained around 60% last year, outperforming other asset classes. However, Ether has outperformed Bitcoin thanks to the adoption of blockchain technology by financial technology companies, and perhaps more specifically the popularity of non-fungible tokens (NFTs) in the art and gaming worlds. Among the largest cryptocurrencies, Binance Coin posted the best performance, adding around 1,300% in 2021.
The recent fluctuations in cryptocurrencies come in a period of volatility for the financial markets. Soaring inflation is forcing central banks to tighten monetary policy, threatening to reduce the tailwind of liquidity that has lifted a wide array of assets.
The Bitcoin hash rate, a measure of the network’s computing power, fell to 176 million terahash on Thursday, from a record high of around 208 million on January 1, according to data from Blockchain.com.
(With contributions from agencies)
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