As the excitement from earlier in the week faded, Bitcoin, along with practically the entire crypto market, took a beating in Friday morning’s early deals.
As the number-one digital coin achieves new heights in mining difficulty, cryptocurrency miners are dumping bitcoin to maintain cash reserves, according to Cointelegraph. This means miners have more rivalry to confirm a block and extract a block reward.
Furthermore, renowned crypto experts Glassnode cautioned that digital tokens are facing a time of protracted uncertainty owing to “approaching storm clouds” of rising inflation, interest rate hikes, and uncertainty about Ukraine, according to a study.
The Financial Stability Board (FSB) recently stated that cryptos may eventually pose a danger to the world’s economic stability, heightening concerns about more regulation, reports Proactiveinvestors.com.
The FSB, an international group that supervises and recommendations made on the global financial system, stated that “crypto-asset markets – could reach the point in which they present a danger to world’s economic stability due to their scale, structural security flaws, and continuing to increase interconnectivity with the context of banking.”
Bitcoin has dropped 7.2 percent to US$40,684 in the last 24 hours, falling below a recent important support level, while Ethereum has dropped 6.1 percent to US$2,904.
Meanwhile, a Morning Consult survey indicated that young investors were looking for alternate funding options such as cryptocurrency to help them improve their financial situation in January.
With Ethereum and Bitcoin down more than 40% from their all-time highs in November, these youthful investors were most likely looking for bargains. On Friday, Avalanche, Terra, and Solana, three popular alt-coins, were among the losers, losing 6.3 percent, 9.6 percent, and 5.5 percent of their value, respectively.
Wrapped Bitcoin, Litecoin, and Near Protocol fell 7.3 percent, 7.7 percent, and 7.5 percent, respectively, outside of the top ten. Meme-coins with a dog motif Shiba Inu and Dogecoin both fell by 8.3 percent and 5.3 percent, respectively.
With the exception of crypto assets, which are tethered to fiat and have advanced no more than 0.1 percent each, 97 of the top 100 virtual currencies were moving in negative territory. Bitcoin and Ethereum have taken a beating due to a slew of cryptocurrency negative news.