Bitcoin touched its highest price point of over $30,000 (roughly Rs. 24.5 lakh) for the first time in around eight months in April. Stepping into May, the most expensive cryptocurrency did, however, record losses. The trading value of Bitcoin on Monday, May 1, stood at $28,560 (roughly Rs. 23.3 lakh) after incurring a loss of 2.38 percent. Over the weekend, Bitcoin value dropped by $850 (roughly Rs. 69,510) on both national exchanges such as CoinSwitch, Kuber, and WazirX, and international exchanges like Coinbase and CoinMarketCap among others.
Bitcoin’s value tumble showed a ripple effect on the pricings of other altcoins. Ether, for instance, slid by 2.70 percent on the price ladder on Monday. ETH, at the time of writing, was trading at $1,847 (roughly Rs. 1.5 lakh) as per Gadgets 360’s crypto price tracker. Over the weekend, ETH rate dropped by $58 (roughly Rs. 4,745).
Among other cryptocurrencies to have seen losses, Cardano, Polygon, Solana, Polkadot, and Litecoin made a mark.
Both memecoins DOGE and SHIB failed to gather profits and settled with small losses alongside Avalanche, Chainlink, Cosmos, Uniswap, and Monero.
The overall crypto market valuation fell by 1.13 percent in the last 24 hours. As per CoinMarketCap, the crypto market cap currently stands at $1.18 trillion (roughly Rs. 96,39,140 crore).
This dip in the prices of most cryptocurrencies comes in the backdrop of another interest rate hike that could be announced by US’ financial authority later this week.
“The crypto community will be closely watching the FOMC meeting tomorrow for strategising their next move. It is highly anticipated that Fed may hike the interest rates by 25 basis points as a part of its continued efforts to tame inflation,” Dhruvil Shah, Vice President of Technology at Liminal digital wallet platform, told Gadgets 360.
Only a few cryptocurrencies managed to record profits on Monday. These include Elrond, Cartesi, Underdog, as well as stablecoins Tether and USD Coin.
“The stability in the job market and signs of inflation cooling down may encourage Fed to end its aggressive rate hikes which will boost liquidity and drive the market momentum in the coming weeks,” Shah added.
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