Bitcoin and Ether lead to the crash of the crypto market as the US Federal Reserve confirms the rate hike

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Two major events in the cryptocurrency space saw the value of Bitcoin plummet to a three-month low as the entire market suffered a cascading crash. At the time of writing, Bitcoin is valued at $ 43,168 (roughly Rs. 32.1 lakh), which is down over 7 percent on global exchanges in the past 24 hours. On Indian exchanges like CoinSwitch Kuber, the price of the most popular cryptocurrency is Rs. 34.92 lakh, down 6.17 percent in the last 24 hours.

The big slump came when the US Federal Reserve announced that it would postpone its rate hike schedule to mid-March. The US Federal Reserve will essentially stop printing money and making credit more expensive to stabilize the economy and keep rising inflation in check. Meanwhile, Kazakhstan, the country that accounts for a large 18 percent of the Bitcoin network’s hash activity, saw a nationwide internet shutdown, causing BTC’s hash rate to drop 13.4 percent – which is reflected in a sharp drop in value.

Ether, the second largest cryptocurrency by market capitalization, also saw a significant decline. The Ethereum-based cryptocurrency recorded an 8.3 percent drop in the last 24 hours after a healthy start to the year. At the time of publication, Ether is valued at $ 3,759 on CoinSwitch Kuber, while the values ​​on global exchanges are valued at $ 3,446, where the coin posted a steeper decline of 9.73 percent in the past 24 hours. The slump results in Ether’s performance improving slightly over the past week, but still down 6.8 percent in value.

Gadgets 360’s cryptocurrency price tracker reveals a bad day for the entire market as stable coins appear to be the only crypto assets that have increased in value. Ripple, Cardano, Polygon, Litecoin, Chainlink and Polkadot all fell in value, while Tether and USDC rose in value.

Meme-Coins were not spared from the crash either. Dogecoin is down 6.86 percent in 24 hours and is valued at $ 0.17 (approximately 12.67 rupees). Meanwhile, Shiba Inu is down 7.61 percent and is valued at $ 0.00032 (about 0.002417 rupees). The value of SHIB is down 10.2 percent over the past week, while Dogecoin is down 6.9 percent.

According to CoinGecko, Bitcoin’s value has fallen over 7 percent in the past week, even though the cryptocurrency is up more than 26 percent year-over-year.

Meanwhile, a member of India’s Monetary Policy Committee (MPC) has given Indian crypto investors a respite from rumors suggesting the crypto sector could be banned outright in the country. Ashima Goyal recently said in an interview with the Press Trust of India that it was difficult to impose a blanket ban on crypto-related activities. The main reason India won’t legalize cryptocurrency as legal tender, according to Goyal, is the possibility that it could be misused for illegal activity.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended as financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any losses that may arise from an investment based on perceived recommendations, forecasts or other information contained in the article.

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