Bitcoin, the world’s largest cryptocurrency, is down nearly 9% today, as hawkish minutes from the Federal Reserve’s December meeting impacted global risk assets. Bitcoin fell 8.88% to $42,654 on Coinmarketcap. The market capitalization of the cryptocurrency fell to $808.445 billion. Currently, the global cryptocurrency market capitalization is $2.02 trillion, with a decrease of 10.12%.
Other cryptocurrencies were also trading in the red today. Ethereum is down 12.91% to $3,343 and Dogecoin is trading 8.19% lower at $0.1563.
Digital token Stellar fell 8.73% to $0.2676, and Litecoin fell 9.96% to $134.37.
XRP fell 10.20% to $0.7478 and Uniswap collapsed 13.63% to $16.38. The decline in cryptocurrencies is in line with the collapse in global markets.
Global stocks and Wall Street futures fell after investors saw minutes from the Federal Reserve’s meeting as a sign that the US central bank might raise interest rates faster to cool inflation. In early trading, the FTSE 100 in London lost 1.1% to 7,435.95. The DAX in Frankfurt fell 1.4 percent to 16,046.83, and the CAC 40 in Paris fell 1.6 percent to 7,255.16.
On Wednesday, the S&P 500 fell 1.9% and the Dow sank 1.1%. The Nasdaq Composite sank 3.3%, its biggest one-day drop in 11 months.
In Asia, Tokyo’s Nikkei 225 fell 2.9% to 28487.87 and the Shanghai Composite lost 0.2% to 3586.08. Hong Kong’s Hang Seng finished 0.7% higher at 23,072.86 after rising late in the session. Meanwhile, former Twitter CEO Jack Dorsey said last year that the cryptocurrency Bitcoin would replace the US dollar. Dorsey has been a huge supporter of Bitcoin. He is also the co-founder and CEO of the financial services firm Block, formerly known as Square Inc.
Recently, cryptocurrency prices have skyrocketed on the back of comments by billionaires Elon Musk and Kathy Wood from Ark Investment Management LLC. In late July, Elon Musk said that Tesla would “probably” start accepting Bitcoin as payment again.
The comment helped the cryptocurrency to cross the $30,000 mark. The electric car maker said in May 2021 that it would no longer accept cryptocurrency for purchase. It’s been a wild ride for bitcoin for the past three years.
The digital currency made its debut on Wall Street in December 2017, when major futures exchanges rolled out Bitcoin futures. Interest has pushed Bitcoin to nearly $19,300, an almost unheard of price for the coin.