Cryptocurrency values have plummeted today, with Bitcoin trading below USD29,000. The world's largest and most popular cryptocurrency, Bitcoin, plummeted more than 2% to USD28,886. So far this year, the token has lost 36% of its value and is trading at a fraction of its peak of USD69,000 in November 2021.
On the other side, Ether, the second-largest cryptocurrency and the coin linked to the Ethereum network, fell more than 10% to USD1,740. Meanwhile, the price of dogecoin was down 7% to USD0.07 today, and the price of Shiba Inu was down almost 12% to USD0.000017. The worldwide cryptocurrency market capitalization is currently USD1.26 trillion, down over 5% in the last 24 hours.
On Wednesday, Terra's operators approved a resurrection plan to start over on a whole new blockchain, but investors in the rest of DeFi were sceptical. The problem was exacerbated by a malfunction in the process of making the Ethereum network less energy-intensive.
Other digital assets such as Solana, Cardano, Avalanche, Polygon, Stellar, Uniswap, Polkadot, Terra (Luna), XRP, Litecoin, and Tron have all had their prices drop in the previous 24 hours.
Cryptocurrencies have been caught up in a risk asset sell-off this year that has gained traction as data revealed rising US inflation, heightening investor concerns about the economic implications of aggressive central bank tightening. The crypto market's slump, which began in April, has wiped out billions of dollars in market value in less than a month.