Crypto Crash: Bitcoin, Ethereum and Tether Prices Plunge as Digital Currency in Freefall | World | New
Bitcoin and Ethereum, the two largest cryptocurrencies in the world, took a big hit today as prices continued to fall, with global crypto marketing even dipping below the $1 trillion mark (878 billion pounds). In the past 24 hours alone, Bitcoin, the market’s main currency, has fallen more than 7.8% to below $19,000 (£16,690). Meanwhile, Ether, which is the coin linked to the Ethereum blockchain, and is currently the second-largest cryptocurrency, fell 10%, hitting a two-month low at $1,370 (£1,146).
These two major declines sent the global cryptocurrency market into freefall, dropping below the $1 trillion mark and hitting $974 billion (£865 billion) in the past 24 hours, according to CoinGecko. .
In June, Ether saw a massive surge due to excitement over an upgrade to the Ethereum blockchain, now that the technology overhaul is complete, prices have plummeted.
Meanwhile, investors are bracing for the possibility of a major wave of monetary policy tightening, particularly in the United States, as the Federal Reserve is expected to issue a massive interest rate hike to combat the global crisis. Cost of life.
The second largest cryptocurrency in the world is undergoing an overhaul that should increase the speed of transactions on the Ethereum blockchain and reduce their cost, according to network developers.
The new update promises to move Ethereum away from the energy-intensive “proof of work” mechanism to validate transactions and towards the more environmentally friendly “proof of stake”.
This upgrade is part of a series of major changes that will affect Ethereum, making the currency more scalable and decentralized. Although other challenges still await the major currency, including the possibility of a regulatory backlash.
Meanwhile, BNB, the world’s fifth-largest cryptocurrency by market capitalization, fell 6.6% today, and Dogecoin, popularized by Elon Musk, fell 8.25%.
XRP and Cardano, which are the seventh and eighth largest cryptocurrencies in the world, both fell around 10% in the last 24 hours.
READ MORE: Crypto Crash: Fears Bitcoin Plunges to $10,000
Express.co.uk previously reported that despite Ethereum’s initial increases after the update, its price could drop to new lows as part of a “back to normal” bullish trap.
This refers to the classic Wyckoff “back to normal” market cycle where many bullish traders get caught in a buy-in as price pulls back in a downtrend.
The founder of Hex and Pulse cryptocurrencies, Richard Heart, last tweeted: “I think Ethereum price will drop sharply in 2 days when EIP-1559 actually goes live.”
Mr Heart spoke to Express.co.uk and explained that major developments in cryptocurrencies preceded significant price drops.
He added: “Speaking of highly speculative markets like Bitcoin and Ethereum, prices rise for big news events. The Chicago Mercantile Exchange Bitcoin futures launch in 2017 was the day of the $20,000 which went down to $3,000.
“Coinbase’s launch this year was the day of the $65,000 high, and we’ve seen $28.6,000 so far, down 56%. Now EIP-1559 is the biggest long news for Ethereum.
“It activates in two days, and it happens to line up with a likely ‘return to normal’ from the bullish trap on the market bubble psychology chart. A perfect storm for new lows premises below $1700 after activation.”
Speaking to Coindesk about the upcoming Ethereum update, Greg Waisman, co-founder and COO of global payment network Mercuryo, said: “Ethereum London’s highly anticipated hard fork event will expose the users to a more flexible and cheaper fee structure and will introduce a slight burn. effect, charged to make ether deflationary.
“The coin has been trending higher since the weekend, and we could see this positive sentiment brewing on the coin pushing its price up to $3,000 in the coming days/weeks after the update.”
THIS IS A BREAKING STORY. MORE SOON