Over $1 billion has been wiped out of the cryptocurrency market as Bitcoin drops to a two-month low
Bitcoin hit a two-month low of approximately US$25,400 on Wednesday night, but by Thursday morning in Asia, it was trading at around US$26,800. Ethereum fell below $1,700 in value.
Bitcoin regained some of its losses on Friday morning in Asia, trading at US$26,800 after hitting a two-month low of roughly US$25,400. Ethereum likewise saw a precipitous decline to a low of roughly US$1,550 before recovering to a price of just around US$1,700.
The weakening of the Chinese yuan and the collapse of Chinese real estate firm Evergrande weighed on investor confidence, causing losses for all but one of the top 10 cryptos that is not a stablecoin. The entire market value of all cryptocurrencies is now only on the cusp of the round number US$1 trillion, as speculators sold off around US$1 billion worth of them.
Ripple Labs’ XRP token was the worst performer after a court in the United States allowed the U.S. Securities and Exchange Commission (SEC) to appeal a recent verdict in favor of Ripple Labs. Although the Forkast 500 NFT index fell, the number of trades kept going up. After a down day on Wall Street, U.S. stock futures showed some stability Friday. Federal Reserve meeting minutes from July continue to stoke fears of future monetary tightening.
CoinMarketCap data shows that Bitcoin has dropped 7.02 percent in the previous 24 hours, to US$26,819.27 as of 07:20 in Hong Kong. This is a weekly loss of 8.88 percent. On Friday morning, the largest cryptocurrency in the world dropped to a two-month low of US$25,409.11.
Bitcoin prices shattered the crucial support barrier at US$28,000 during late US/early Asia trade volumes. According to an email from Matrixport’s head of crypto research Markus Thielen, a collapse or significant decrease was anticipated.