Crypto currency, Bitcoin as per reports doing the rounds, is said to have fallen below a critical $30,000 support zone with over 428,000 traders having encountered losses that total a sum of $1.22 billion in the last 24 hours.
It’s decline was equated with 2008 stock market crash.
At the point of writing it is reported to currently sit at $1.16 trillion, a 20% fall in market capitalization, with strong indications that the market will still go on to crash, eventually loosing its trillion-dollar status.
As with bitcoin, so are other altcoins posting declines, some at 40% and more in the recent days as the sell-off deepens.
The drop off can be seen as the effects of a policy decision made by the federal reserve with the U.S. Fed having increased the interest rate to bring about a strong dollar index; a thick prove on the measure of the dollar strength.
These all came about the minute the U.S. Fed hiked its interest rate to 1%, the largest increase since 2000, when it handed down its policy decision last week Wednesday.
Although, many have attributed the crisis with another factor which is LUNA and its programmable stablecoin UST causing the selloff in the market which is partly because before the selloff, the Luna Foundation Guard (LFG)had bought $3 billion worth of Bitcoin to defend the UST peg.
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