Bitcoin crashed below $25,000, plummeting by over 14.86 per cent. The crypto token value fell from its peak of $28,189 to $24,000 on Monday. Consequently, the global crypto market cap was less than $1 trillion, the lowest in a year, as per data from Coinmarketcap.com.
The crypto market capitalisation was down to $982.61 billion.
As per WazirX’s exchange data, in India, over the last seven days, the Bitcoin’s price crashed from over ₹55 lakh to Monday’s lowest of ₹19.72 lakh, declining by over 65 per cent. Other tokens like Ethereum dropped from ₹3.85 lakh to ₹1.02 lakh, Doge coin .to ₹4 from ₹58 in one week.
“It has gone down not just because the crypto markets are going down, but also the global markets are going down. The global markets’ prices have started going down after the consumer price index numbers came in last week. The crypto markets will either go sideways or remain at these levels till August. Also, the global markets, with their current trajectory, might get into a recession-like position soon,” Sidharth Sogani, Founder and CEO, CREBACO Global, told BusinessLine.
“Crypto markets have seen a correction due to weak global cues. Internationally, the stock and crypto markets have become highly correlated. The inflation rate globally has also been a major concern for investors. In the US, it is at a 40-year high at 8.6 per cent and in the UK at 9 per cent; interest rate hikes across major crypto nations are also a growing concern as they lessen liquidity. Both the indicators have led to a massive sell-off, “Ragopal Menon, Vice-President, WazirX
He added, “In India, the central bank raised the full-year forecast for the FY23 consumer price index to 6.7 per cent, which is more than the target, and the Indian rupee has hit a record low of 78.28. Hence, investors have adopted a wait-and-watch stance as the early indicators are in the red. We expect this bearish market trend to persist in the near short term.