Bitcoin prices fell drastically on Saturday, December 4, amid Christmas risk-off taking a cue from the global stock market, which remained volatile for the same reason. The global cryptocurrency market on the day logged a sharp decline in its number as more investors sold off stock to settle for the secure investment option as Christmas day neared.
Cryptocurrency Market is Down again.
Bitcoin the latest victim to this sell-off, fell down to as low as $42,000 as per reports. This was as much as a $10,000 decline as compared to its price a day back. This came after Bitcoin hit a seven-week low last month to close at $54,000 after touching its all-time high days back.
At its lowest on Saturday one unit of Bitcoin sank below the $42,000 mark, losing as much as 22 percent, as per a Reuters report. However, following this, the world’s largest cryptocurrency by market value pared its losses to settle at the $47,000 mark. Bitcoin prices stood at $48,671.93 at the time of writing this article, according to data from Cryptopickup.com. This was up by 0.22 % over the course of the last 24 hours and down by 0.19% in the last 1 hour.
Ethereum, the second-largest by capitalization in Cryptocurrency market, also fell to as low as $3,905 on the day, declining by almost 15 percent. At the time of writing this article, the altcoin gains some momentum to stand at $4,147.56 per unit. This was a gain of 0.41% in the last 24 hours while a dip of 0.26% in the last 1 hour.
As per the report, the crash is an outcome of a risk-off sentiment among investors that has been triggered by the detection o the new Omicron variant of Covid-19. It can also be attributed to a sudden incline toward hawkishness by US Federal Reserve Chairman Jerome Powell.
“Risk assets like stock and Bitcoin are tanking simply because Powell hinted the Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner,” tweeted Peter Schiff, chief economist and global strategist at Euro Pacific Capital.
Other Major Cryptocurrencies like Solana, Shiba Inu, Cardano, and Polygon also tanked 13 to 20 per cent during the day. The global market cap also showed a sharp decline over the past 24 hours, standing at $2.23 trillion. This was a 14.64 per cent decline over the past 24 hours (4 , December). On the other hand, the total crypto market volume tracked a sudden increase. The volume of traded coins over the last 24 hours stood at $199.83 billion which is a 76.05 per cent rise , data showed.