Bitcoin, Most Cryptocurrencies Open with Losses as US Mulls More Rate Hikes

Reds dominated the crypto price chart on May 6, 2022 as majority cryptocurrencies opened with minor, but notable losses. Bitcoin stepped into Friday with a sizable dip of 6.67 percent. As per Indian exchange CoinSwitch Kuber, BTC is currently trading at $38,630 (roughly Rs. 29 lakh). The oldest cryptocurrency saw even bigger losses on international exchanges. Binance and CoinMarketCap for instance, showed BTC values dipped by up to 7.69 percent. The oldest cryptocurrency is priced $36,465 (roughly Rs. 28 lakh) on international exchanges.

Ether saw losses, slightly smaller that Bitcoin. ETH fell by 4.88 percent to trade at $2,916 (roughly Rs. 2.25 lakh) as per Gadgets 360’s crypto price tracker.

Majority altcoins like Binance Coin, Solana, Ripple, Cardano, and Avalanche tumbled down the price charts along with BTC and ETH.

Even memecoins Dogecoin and Shiba Inu remained affected by losses.

The US Federal Reserve has been revising its economic structure as fears of recession loom over the nation.

The organisation lifted its core interest rate by 0.5 percent earlier this week — making for its second hike in two months and the largest increase since 2000. The inflation levels in the US have reached 40-year highs stirring concerns among investors of stocks and cryptocurrencies.

Since cryptocurrencies fall under the high-risk category of investments, investors are refraining from pushing their money into volatile sectors such as virtual assets.

The global crypto market’s value slipped over 8 percent in the past 24 hours.

As per CoinMarketCap, the current market cap of the crypto industry stands reduced to $1.66 trillion (roughly Rs. 1,28,06,601 crore). As of May 4, the figure was higher at $1.71 trillion (roughly Rs. 1,71,619 crore).

Meanwhile, stablecoins such as Tether, USD Coin, and Binance USD managed to reel-in very small gains.

In other developments, the International Monetary Fund (IMF) has advised the Central African Republic to not go ahead with its plans of adopting Bitcoin as a legal tender.

While the IMF continues to remain sceptical about the crypto space, France has become the first European nation to grant Binance crypto exchange, official licence to operate in the country.

Kazakhstan and US’ New York state, on the other hand, are working to keep crypto miners in check to avoid power crisis in the regions.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.