bitcoin price today: Bitcoin drops 50% from peak, near lowest levels in last one year

Synopsis

However, despite the sharp fall in the price, the supremacy of Bitcoin among crypto tokens has increased. Bitcoin’s dominance is currently 41.64 per cent, which was around 36-38 per cent at the peak.

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New Delhi: A sharp selloff in riskier assets has been weighing hard on sentiments around cryptocurrencies as well. Bitcoin, the largest crypto token in terms of market capitalization and dominance, dropped below the $33,400 mark on Monday. It has wiped out more than half of investors’ wealth since hitting a lifetime peak of $67,566 in November 2021.

According to industry players, the anticipation of a sluggish global economy, rising interest rates, inflationary worries, global economic crisis and risk aversion are key reasons dragging the price of Bitcoin lower.

Vikram Subburaj, CEO, Giottus Crypto Exchange, said Bitcoin and the wider crypto markets have been affected by negative sentiment across investor groups given the hike in interest rate and the concerning inflation data globally.
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The largest token among crypto assets has been commanding a market cap of more than $635 billion with a 13 per cent rise in trading volume as Bitcoins worth more than $37.26 billion exchanged hands in the last 24 hours.

Not only this, the total total market capitalization of crypto assets has dropped over 50 per cent to $1.51 trillion from $3.15 trillion, when the market was in full swing during the later end of 2021.

However, despite the sharp fall in the price, the supremacy of Bitcoin among crypto tokens has increased. Bitcoin’s dominance is currently 41.64 per cent, which was around 36-38 per cent at the peak.

This signals that fall in altcoins has been steeper compared to the crypto behemoth. On a weekly basis, Bitcoin has plunged about 15 per cent, data from Coinmarketcap suggested.

Market experts say crypto tokens are losing their sheen following the recent mayhem in technology stocks. Tech-heavy Nasdaq Composite has tumbled about 25 per cent in the year 2022 so far.

Bitcoin dipped significantly over the past week following a hike in interest rates. It seems like investors and institutions have paused for a while, said Edul Patel, CEO & Co-Founder, Mudrex.

“If this downtrend continues, we may also see BTC testing the $30,000 level. Due to rising macroeconomic factors, the downward trend is likely to continue for the next few days,” he added.

Last week, central banks around the world, including the US, UK, Australia and India, raised interest rates as they attempted to tackle rising prices.

The US Federal Reserve raised its key lending rate by half a percentage point, marking its biggest rate hike in more than 20 years. Investors are also worried about recession fears.

However, there is likely to be an extended period of consolidation leading into Q3 2022 with Bitcoin set to retest its 12-month lows below $30,000, said Subburaj.

“Investors will be better off to stack cash and wait for signals of a reversal before allocating fresh capital to crypto. Patience will be key. We anticipate a strong Q4 2022 for crypto assets,” he added.
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Updated: 05/09/2022 — 06:00

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