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Bitcoin price: Why is crypto crashing? Why Bitcoin is down today – and BTC, Ethereum, Dogecoin, Cardano prices

Bitcoin price: Why is crypto crashing? Why Bitcoin is down today - and BTC, Ethereum, Dogecoin, Cardano prices
Written by publisher team

After a turbulent end to the cryptocurrency market in 2021, the price of bitcoin plunged again in early January in the flash crypto crash.

While the price of Bitcoin was trading at around $50,000 a little over a month ago, cryptocurrency prices crashed across the board on Wednesday evening (January 5).

But the decline in Bitcoin’s value has spread across major cryptocurrencies and meme alike, as the US Nasdaq index has been shaken by plans to raise US interest rates and political turmoil in Kazakhstan – which Cambridge researchers estimate is the world’s second-largest home to crypto-mining. After China tightened mining operations in 2021.

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Kazakhstan: What triggered the riots in Kazakhstan and what has happened so far?

Concerns about rising US interest rates and the impact of protests and political turmoil in Kazakhstan on the country’s large mining operations appear to be the driving forces behind the Bitcoin price drop, as traditional and crypto markets continue to grapple with the impact of the coronavirus on the global economic recovery.

Bitcoin price has now fallen to levels last seen in late September and is now trading at around $43,000 after the world’s leading cryptocurrency surged to a new record high of $69,000 on November 10.

The cryptocurrency market is down 2.3% in the past 24 hours as of 8.50am UK time on Friday according to Coinbase, with bitcoin trading down 2% and Ethereum and Solana down 5% and 6%, respectively.

Bitcoin price: why is crypto crashing? Cryptocurrency prices for Bitcoin, ETH and Shiba Inu as values ​​plummet in rapid market crash (Image Source: Getty Images/Canva Pro)

Here’s why the cryptocurrency crashed on Wednesday and Thursday – and the latest prices for Bitcoin, Ethereum, Solana, Cardano, XRP, Shiba Inu coin, and Dogecoin.

What is the price of bitcoin today?

On Friday, January 7, the price of Bitcoin plunged again – indicating a return to the $40,000 threshold of support among cryptocurrency traders.

The world’s largest cryptocurrency was trading at around $42,779 as of 3.20am this morning, according to Coinbase, before dropping to $41,000 a little over an hour later at 4.35am.

In the hours after Friday morning, bitcoin was hovering between $41,000 and $42,500 – but likely backed by waves of upward support in the form of rallies that usually follow such rapid crashes.

As of 8.45am on Friday, Bitcoin’s price is down 1.6% in the last 24 hours at $42,185.15 (£31,194.02), with a 35% increase in 24-hour trading volume according to data compiled by CoinMarketCap.

Over the past few weeks, the bitcoin price has been mostly fluctuating between $45,000 and $50,000 over the past few weeks – reaching a recent high of $52,100 on Dec 27.

The price of the major cryptocurrency dropped below $45,000 to $42,500 at 10:30 p.m. Wednesday (January 5th), with the sudden drop in the cryptocurrency’s price echoing the drop in the price of Ethereum.

The price of the major cryptocurrency has seen recent gains of nearly $15,000 wiped off the Bitcoin board after it came close to hitting a new historic threshold of $70,000 in November.

After rising to $69,000 at 2pm on November 10, the bitcoin price dropped to $64,292.43 by 10pm on the same day.

Why did bitcoin drop today?

Bitcoin enjoyed a bullish rally to nearly $70,000 in value in early November as investors hoped the cryptocurrency’s $1 trillion market capitalization would hold steady ahead of a volatile trading period.

But it fell below $50,000 in late 2021 as US and UK markets struggled to deal with renewed concerns about Covid-19, the variable Omicron and high inflation.

The recent drop in the bitcoin price came with a sharp sell-off on the Nasdaq on Wednesday (January 5), as the US central bank prepares to move away from its pandemic monetary policies for the coronavirus with interest rate hikes and a possible stock cut. in order to reduce its balance sheet.

500 points were erased from the tech-heavy Nasdaq after the release of the minutes of the US Federal Reserve’s last meeting in December – as “expectations for an accommodation policy cut forward shifted significantly”.

The Nasdaq fell 500 points and traded down about 3.34% to close at 15,100.17 on Wednesday.

The impact was also felt across other US stock indices, with the Dow Jones Industrial Average (DJIA) down about 1.07% and the S&P500 down 1.94% on Wednesday.

But cryptocurrency has also taken a hit as cryptocurrency mining in Kazakhstan, which has been rampant since China banned cryptocurrency mining in the country, plunged into a nationwide internet outage this week.

The country has plunged into political turmoil, after the Kazakh government’s decision to allow market prices to control the country’s fuel prices doubled the price of liquefied petroleum gas – sparking mass protests over the country’s economy and human rights in recent days.

The Internet was cut off on Wednesday, reports the Internet Disruption Observatory netblocksThe cessation of cryptocurrency mining is reflected in the lower Bitcoin hash rate.

Bitcoin mining pools saw at least a 12% drop in the number of BTC hashes during the Wednesday internet outage, Larry Cermak, vice president of research at The Block, tweeted Wednesday.

In November, the Financial Times reported that the country’s growing crypto mining operations have seen power outages across the country as energy-intensive mining rigs have caused blackouts in many regions of Kazakhstan and the electrical grid has threatened to ration power supplies for some crypto miners.

What are the prices for Ethereum, Shiba Inu, and Cardano today?

With cryptocurrencies often moving hand in hand with Bitcoin, ethereum, Cryptocurrency is synonymous with the cryptocurrency rising trend of NFTsAnd It fell 11% on Thursday after hitting a new record high of around $5,000 in early November.

Ethereum price fell below the $4,000 threshold and was trading at $3,237.38 (£2,387) at 8.36 am on Friday, an additional 5% drop over the past 24 hours.

The hype surrounding the famous memecoin Dogecoin It has been similarly fluctuating in recent months as new coins and memes have stolen the limelight.

Dogecoin price was trading down around 7.55% in the past 24 hours at $0.157,279 (£0.12) on Thursday morning, but was trading slightly higher at $0.16 (£0.12) on Friday.

Shiba Inu, the so-called ‘Dogecoin killer’, is meanwhile trading up ~9.4% over the past 24 hours at ~$0.00003000 (£0.00002210) on Thursday morning but trading down 0.34% at $0.0002980 (£0.00002200) GBP) at 8.40 on Friday morning

at the same time, Cardano (ADA) prices are hovering around $1.23 (£0.904,632), up 1% after dropping nearly 10% on Thursday, XRP It rose 2.1% to $0.768864 (£0.567,778) and Solana It was down 6.3% to $139.64 (£103.12) as of 8.45am on Friday.

When was the last major cryptocurrency crash?

In June, the Chinese government cracked down on large cryptocurrency mining operations taking place in Sichuan Province and demanded Chinese banks and payment channels to stop supporting decentralized and anonymous crypto transactions.

This drove the bitcoin price to below $30,000 in a big drop from its high success.

Cryptocurrency has continued to rise and fall as other global administrations and regulators consider legislation to curb the increase in crypto activity often attributed to money laundering and crime.

In the wake of the Chinese state’s move, countries like South Korea have also pledged to tackle the increase in crypto money laundering, while the Metropolitan Police has announced that it has successfully shut down a massive crypto money laundering operation in the UK.

July saw the Met seize a £180m cryptocurrency in the UK’s largest crypto forfeit to date.

In turn, cryptocurrency exchanges such as Binance have been feeling the pressure around the world as regulators and governments have begun to pay close attention to the operations of such exchanges in the wake of the global crackdown on cryptocurrencies.

As a result, the highest bitcoin price halving occurred in June, as the coin struggled to break out of the $30,000 low to mid price range until it received a welcome boost from Tesla CEO Elon Musk at his appearance at the major Bitcoin conference in July .

A bullish run and increased confidence in Bitcoin could keep its price volatile between $60,000 and $70,000 in the future, but with increased resistance as it looks towards the $100,000 price prediction in 2022.

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