Bitcoin’s steep dive
Bitcoin’s value has dropped by 7.6% over the last 24 hours, hitting its lowest point since December 2020. Ethereum has suffered a similar fate sinking almost 30% over the last week. The cause of this market turmoil is believed to be concerns among investors over so-called ‘extreme market conditions’ sparked by soaring inflation rates In the US.
Rising inflation rates
Experts believe that the sudden drop in Bitcoin’s value could be a result of increased mining costs, as energy costs are becoming more expensive. Bitcoin is known to consume up to 0.55% of all global electricity and the increased cost of energy, coupled with inflationary pressures, could see the value of all cryptocurrencies continue to fall.
Crypto market turmoil
Despite assurances from some commentators that the market will begin to recover, crypto lender Celsius was forced to pause withdrawals, admitting that such a measure was necessary ‘to stabilize liquidity and operations’. The total wipeout in the market has seen almost $80 billion wiped off the value of the global cryptocurrency market in the past 24 hours.
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