Crypto Crash: bitcoin, ether, dogecoin, shiba inu and other crypto drops today

Crypto Crash: bitcoin, ether, dogecoin, shiba inu and other crypto drops today

The price of the cryptocurrency fell today as Bitcoin plunged below $44,000, the lowest level since the December flash crash. The world’s most popular and largest digital token by market capitalization was trading at $43,167, down nearly 7%. Bitcoin, renowned for its volatility, has fallen by more than $25,000 since hitting a record nearly $69,000 in early November.

“Bitcoin corrected sharply and dropped to the $43.5K level soon after the Federal Reserve reaffirmed plans to hike interest rates. The crypto markets witnessed huge selling during this period. The 4-hours trend of BTC is indicating a breakout below the pattern. Siddharth Menon, COO of WazirX, said that the next support for BTC is expected to be $40,000.

Ether, the coin tied to the Ethereum blockchain and the second-largest cryptocurrency, also fell more than 8% to $3,494, according to CoinDesk. On the other hand, the price of Dogecoin is down almost 6% to $0.15, while the Shiba Inu is down more than 7% to $0.00030. Meanwhile, Binance Coin also fell nearly 7% to $476.

Other digital tokens such as Solana, Polygon, Uniswap, Stellar, Cardano, XRP, Tether, Litecoin were also trading with losses of 5-7% in the last 24 hours. According to CoinGecko, the global crypto market capitalization slipped 6% at $2.22 trillion, due to the decline in crypto.

“Ethereum and other altcoins followed bitcoin for a bullish corrective. Ethereum fell below the $3,500 level before recovering back and settling above that mark. On the daily time frame, ETH trended as a descending wedge pattern. A breakout can be seen below. An immediate support is expected at the $3,400 mark,” Menon said.

Digital asset manager CoinShares said in a report that the last week of 2021 saw a third straight week of investments from cryptocurrency funds. Last week there was a total outflow of $32 million from the sector. Total assets under management increased from just $2.8 billion at the end of 2019 to $62.5 billion in 2021.

Ethereum inflows doubled to $1.3 billion in 2021 from $920 million in 2020. In contrast, bitcoin rose 16% to $6.3 billion. 

The recent volatility in cryptocurrencies comes during a volatile period for the financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to ease the liquidity tailwind that has lifted a wide range of assets.