Cryptocurrency Prices: Bitcoin Dips Below $85,000 Amidst Market Selloff
Bitcoin Prices Decline Significantly
Bitcoin prices spiralled lower on Monday, dipping below $85,000 as investors engage in a selling frenzy that started in October. The cryptocurrency dropped more than 8% in the last 24 hours alone, falling to $84,096 as of 11:15 a.m. on Monday, according to data aggregator CoinGecko.
Impact on Market Value
Bitcoin has lost roughly a third of its value since hitting a record high of nearly $125,000 on October 6. This slump has wiped out over $750 billion in the digital currency's total market value, as indicated by CoinGecko. Bitcoin's decline has also negatively impacted other crypto-related stocks, such as mobile trading platform Robinhood, which tumbled 3.5%, and Coinbase, which lost 4.2%. Other leading digital currencies like Ethereum and XRP have also experienced significant losses.
Why Are Cryptocurrency Prices Falling?
Experts have pointed to global economic developments as a primary reason for the downturn in cryptocurrency prices. Bitcoin sank after a Bank of Japan official hinted at a potential interest rate hike scheduled for December 18-19. Higher interest rates often increase market demand for safer assets, putting pressure on riskier investments, including cryptocurrencies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.