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Crypto currencies plunge, Bitcoin trades below $29,000

written by Bella Palmer
bitcoin-trades

The world's largest and most popular cryptocurrency fell more than 2% and was trading at $28,886

Cryptocurrency prices today plunged with Bitcoin trading below the $29,000 mark. The world's largest and most popular cryptocurrency fell more than 2% and was trading at $28,886. The token is down 36% so far this year, and trading far below the peak of $69,000 it hit in November 2021.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, declined more than 10% to $1,740. Meanwhile, dogecoin price today was trading 7% lower at $0.07 whereas Shiba Inu also was down over 12% to $0.000017. The global cryptocurrency market cap today is $1.26 trillion, down over 5% change in the last 24 hours.

While Terra’s operators had passed a revival plan to start afresh on a totally new blockchain on Wednesday, investors in the rest of DeFi were less than convinced. A glitch in the process to make the Ethereum network less energy intensive added to the concern.

Demand for blockspace on the Ethereum network has reduced significantly in the wake of Terra’s collapse, which means that consequently, the network’s so-called gas fees are falling, reported Bloomberg.

Other digital tokens' performance also plunged as Solana, Cardano, Avalanche, Polygon, Stellar, Uniswap, Polkadot, Terra (Luna), XRP, Litecoin, Tron prices were trading with cuts over the last 24 hours.

Cryptocurrencies have been swept up in a sell-off this year in risk assets, which has picked up steam as data showed US inflation running hot, deepening investor fears about the economic impact of aggressive central bank tightening. The downturn in the crypto market which started in April has wiped billions of dollars in market value within a month.

Disclaimer:

The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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