Bitcoin, along with other digital cryptocurrencies, crashed to its lowest level on Saturday and the ongoing crash has wiped more than $1 trillion off the value of the global crypto market.
Bitcoin hovered around $35,000 per coin and the largest digital asset by market value has lost more than 40 percent since peaking in November 2021.
Bitcoin hit an all-time high of roughly $69,000 in November.
The crypto crash came as the US Federal Reserve raised the possibility of raising interest rates as early as March and withdrawing market stimulus.
Read also | Bitcoin's dominance of crypto payments is starting to erode
Other digital currencies, Ethereum, Finance Coin, and Cardano also witnessed similar crashes. Solana, Dogecoin and Shiba Inu also saw massive drops.
Bitcoin has tumbled below $36,000, a level below which โthere isn't much support until the $30,000 level,โ Edward Moya, senior market analyst at Oanda, said in a note.
Bitcoin's decline since November has wiped out over $600 billion in its market value.
Crypto assets like Bitcoin have gone from being an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns.
Given their volatility and relatively high valuations, cryptocurrencies' further joint movement could soon pose risks to financial stability, especially in countries with widespread cryptocurrency adoption, according to IMF research.
Therefore, it is time to adopt a comprehensive and coordinated global regulatory framework to guide national regulation and supervision and mitigate risks to financial stability stemming from the crypto ecosystem.
The market value of these new assets rose to nearly $3 trillion in November from $620 billion in 2017, thanks to their growing popularity with retail and institutional investors alike, despite high volatility.
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