Cryptocurrency prices today plunged with Bitcoin trading below the $49,000 level on Monday after a brutal weekend in which the price of the world’s largest and most popular digital token at one point lost over one fifth of its value. Bitcoin price slipped 3% today to $48,130. Similarly, ether and other cryptos also declined. Global crypto market cap crashed 5% to $2.33 trillion, as per CoinGecko.
Ether price fell over 4% to $4,062 whereas dogecoin slipped over 6% to $0.16 and Shiba Inu plummeted more than 8% to $0.000034. On the other hand, Litecoin, XRP, Polkadot, Uniswap, Cardano, Solana, Polygon were also trading with cuts over the last 24 hours.
The swings in cryptocurrencies come amid a volatile period for financial markets. Spiking inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
The selloff also comes ahead of testimony by executives from eight major cryptocurrency firms, including Coinbase Global CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried, before the US House Financial Services Committee on December 8.
The hearing marks the first time major players in the crypto markets will testify before U.S. lawmakers, as policymakers grapple with the implications of cryptocurrencies and how to best regulate them. Last week, the U.S. Securities and Exchange Commission (SEC) rejected a second spot-bitcoin exchange-traded fund proposal from WisdomTree.
Bitcoin, famed for its volatility, has shed more than $21,000 since hitting a record in early November, but it’s still up more than 65% this year.