Bitcoin falls below $24,000
As the world's largest cryptocurrency plunges under the $24k barrier, it's clear to see why. Bitcoin once commanded a market cap of $1.3 trillion, but is now down to $455 billion. Ethereum, the second largest cryptocurrency by market cap, is down more than 16% today and other top cryptocurrencies have also fallen. The price of a bitcoin is now worth $147 billion, making it the worst performing among them.
In recent days, cryptocurrency prices have tumbled sharply, sending the price of Bitcoin down to its lowest level since December 2020. While cryptocurrencies like Bitcoin are considered to be a safe haven for investors, the prospect of rising interest rates, inflation, and dislocation of global commerce are weighing heavily on the minds of investors. In March, the U.S. government issued a warning against rising inflation, which could prompt the Federal Reserve to increase interest rates even more quickly.
With the US central bank likely to ramp up borrowing costs for its citizens, it's no wonder that bitcoin is falling so fast. Over the past 24 hours, bitcoin prices have fallen sharply. This dip is due to surging interest rates, aggressive rate-hike signals, and a resurgent U.S. dollar. However, as of May 1, the currency is down more than 12% and is now trading at less than $24000.
Despite the strong growth of the crypto market last year, Bitcoin fell below $24000 on Monday. The weekend's volatility also caused a selloff in the wider cryptocurrency market, and over $200 billion of crypto assets were sold off. The market cap of the entire crypto market dropped below $1 trillion for the first time since February 2021. The plunge has left investors wondering whether to invest in the currency again. You might have been right.
With US and UK inflation reaching highs, investors are not holding cryptos to counteract inflation. They are still holding safe-heaven assets such as gold. In addition to falling prices, bitcoin is no longer considered a safe haven. Inflation is one of the biggest factors driving the currency's fall. Hence, we should be cautious while buying bitcoin. And remember that the market is still in its early stages. And while bitcoin may seem like a good investment, it is not a long-term strategy.
On Monday, the combined market cap of all cryptocurrencies plunged by 12% to $969 billion, the lowest point since February 2021. Bitcoin's all-time high in November was $69,000, so the market cap of all cryptocurrencies has fallen more than 200%. In this short period, all the top cryptocurrencies on CoinMarketCap are in the red and have posted double-digit losses in the last 24 hours. However, there are some good things in the near future.