Bitcoin Drops to Three-Week Low, Falls 7.7 Percent Due to Sudden Selling

Friday's move put Bitcoin on track for its worst day since the June meltdown.

Bitcoin Drops to Three-Week Low, Falls 7.7 Percent Due to Sudden Selling

Photo Credit: Unsplash/Kanchanara

The US Federal Reserve rate hikes and inflation have prompted investors to ditch riskier assets

Highlights
  • Bitcoin was trading at around $21,400 (roughly Rs. 17,10,400) on Friday
  • Cryptocurrencies have fallen dramatically so far this year
  • Ether was last down at 8.8 percent on Friday

Cryptocurrencies fell sharply on Friday, with sudden selling dragging Bitcoin to a three-week low. Bitcoin fell as much as 7.7 percent to $21,404 (roughly Rs. 17,10,700) over a few minutes during the European morning, at around 0640 GMT. It recovered slightly then continued its downward trajectory to trade around $21,400 (roughly Rs. 17,10,400) at 1138 GMT, down 8.2 percent on the day.

Ether also dropped around the same time and was last down 8.8 percent at $1,685 (roughly Rs. 1,34,700).

The reason for the drop was not clear.

"It's not showing the pattern of a flash crash, as the assets didn't immediately rebound sharply but sank even lower in the hours that followed," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

"It seems likely that this was as a result of a large sale transaction."

Streeter said it appeared the cryptocurrency Cardano had been the first to move, followed by Bitcoin and Ether, and then others such as the altcoin Dogecoin.

Cryptocurrencies have fallen dramatically so far this year, as US Federal Reserve rate hikes and ultra-high inflation prompt investors to ditch riskier assets.

Craig Erlam, senior market analyst at Oanda, said Bitcoin's failure to recover its losses "suggests there is substance to the move".

Such sharp moves are common in the highly volatile cryptocurrency market. On June 15, Bitcoin plunged more than 15 percent as investors were spooked by the collapse of a so-called stablecoin, TerraUSD, and a major crypto lender freezing customer withdrawals.

Friday's move put Bitcoin on track for its worst day since the June meltdown.

"Speculating in cryptocurrencies is extremely high risk and is not suitable for the vast majority of people," Hargreaves Lansdown's Streeter said.

© Thomson Reuters 2022


Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Bitcoin, Ether, Ethereum, Cryptocurrency
Realme 8 5G, Narzo 30 5G Receive Android 12-Based Realme UI 3.0 Update in India
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.