Cryptocurrency is now on the low, with Ethereum and Bitcoin among the currencies affected by the cryptocurrency crash.
Bitcoin price is now down to 10%.
Bitcoin Price
On Saturday, December 4, Bitcoin lost a fifth of its value due to profit-taking and macro-economic concerns, resulting in roughly a billion dollars worth of selling across cryptocurrencies.
At 09:20 GMT, Bitcoin was trading at $47,495, which was down 12%. During the session, it went as low as $41,967.5, bringing the day's losses to 22%.
Cryptocurrency Crash
The market valuation of the 11,392 currencies tracked by cryptocurrency data platform Coingecko has decreased nearly 15% to $2.34 trillion.
Last month, when Bitcoin hit a new high of $69,000, its worth temporarily surpassed $3 trillion.
The drop comes after a tumultuous week in the global markets.
On Friday, December 3, global markets and benchmark U.S. bond yields fell as statistics revealed that employment growth in the United States slowed in November, and the Omicron strain of the coronavirus left investors on edge.
According to Reuters, Justin d'Anethan, the Hong Kong-based head of exchange sales at cryptocurrency exchange EQONEX, said he'd been keeping an eye on the rise in leverage ratios in the cryptocurrency markets, as well as how major investors were shifting their coins from wallets to exchanges.
The latter is usually indicative of a desire to sell.
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Bitcoin Dip
The selloff comes as executives from eight key cryptocurrency companies, including Coinbase Global (COIN.O) CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried, testify before the US Securities and Exchange Commission.
On December 8, the House Financial Services Committee will meet.
As policymakers deal with the consequences of cryptocurrencies and how to effectively regulate them, the hearing will be the first time prominent actors in the crypto markets will testify before US Congress.
Approximately $1 billion worth of cryptocurrencies were sold in the last 24 hours, with the majority of the transactions taking place on digital exchange Bitfinex.
Talking about Bitcoin, the biggest stable coin in the cryptocurrency world, Justin D'Anethan stated "if anything, this is the opportunity to buy the dip for many investors who might have previously felt like they missed the boat. We can see tether bought at a premium, suggesting people are getting cash ready, within the crypto space, to do just that."
A drop in Bitcoin financing rates or the cost of holding Bitcoin via perpetual futures, from 0.06% in October indicated that traders had become negative.
The financing rate on BitMEX, a cryptocurrency trading platform, decreased to a negative 0.18% from 0.01% for the most of November.
Crptocurrency Crash: Ethereum
The Ether coin, which is tied to the Ethereum blockchain network, has dropped more than 10% as a result of the cryptocurrency selloff.
The price of Ethereum fell below $3,700 on Saturday morning, extending a sharp slump that began Friday afternoon.
The sharp decrease comes after Ethereum had a solid week, nearly reaching $4,800 on Wednesday, December 1, close to its all-time high.
The price of Ethereum has been fluctuating this week after several brief dives below $4,000 in recent days - the lowest it has been since early October.
On November 10, the price of Ethereum surpassed $4,850, setting a new all-time high.
As reported by Time, before the current volatility, Bitcoin and Ethereum were both at or near all-time highs, with Bitcoin reaching a new all-time high of almost $68,000 in November.
Bitcoin, too, saw a significant decline on Saturday morning, falling below $50,000.
