Bitcoin plummeted below USD39,000 in cryptocurrencies on Thursday, erasing gains made by US President Joe Biden's executive order on crypto, as digital tokens sank alongside stocks amid strong inflation figures and increased geopolitical anxiety. Today, the price of bitcoin was trading at USD38,655, down over 5 percent. So far in 2022, year-to-date, the world's most popular and largest cryptocurrency is down around 16 percent.
After US inflation hit a 40-year high and the war in Ukraine continued to impact on commodities, US equities and other risky assets were under pressure. In recent years, Bitcoin has shown a proclivity to track stock market movements.
On the other side, Ether, the cryptocurrency tied to the Ethereum blockchain and the second-largest cryptocurrency by market value, fell more than 4 percent to USD2,567. Shiba Inu was trading 4 percent lower at USD0.000022, while Dogecoin was down more than 3 percent at USD0.11.
Other digital tokens' performance sank as well, with Avalanche, Polygon, Cardano, and Litecoin prices falling while Stellar, XRP, Uniswap, Solana, Polygon, and Polkadot had 3-8 percent drops. Terra, on the other hand, was up roughly 2 percent in the last 24 hours.
Meanwhile, according to CoinGecko, the global cryptocurrency market capitalization remained below USD2 trillion at USD1.81 trillion, up more than 5 percent in the last 24 hours.
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