Bitcoin traded at below the $49,000 mark on Monday after a weekend where it lost over one-fifth of its value. The price of Bitcoin fell 3% and reached $48,130. Other cryptocurrencies dropped too, including ether. The global market cap crashed 5% and fell to $2.33 trillion.
The price of Ether fell over 4% to reach $4,062 whereas Dogecoin slipped over 6% to reach $0.16 and Shiba Inu plummeted more than 8% to $0.000034.
Litecoin, XRP, Polkadot, Uniswap, Cardano, Solana, Polygon were also observed trading with cuts over the last 24 hours.
The Reason Behind The Sudden Drop Of Bitcoin And Other Assets
This swing came amidst a volatile period for these markets. The sudden spike in inflation has forced central banks to tighten their monetary policy, which in turn threatened to reduce the liquidity of a wide range of assets.
The selloff comes ahead of testimony by executives from 8 major cryptocurrency firms, including Coinbase Global CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried, before the US House Financial Services Committee on December 8.
This hearing will be the first, where major players in the cryptocurrency markets will testify before the US lawmakers as the policymakers keep on grappling with the implications of cryptocurrencies and how to best regulate them.
Last week, the US Securities and Exchange Commission (SEC) rejected a second spot-bitcoin exchange-traded fund proposal from WisdomTree.
Bitcoin was always famous for its volatility and has now, shed more than $21,000, since hitting the record in early November. However, it is still up more than 65% in this year.