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Business News/ Markets / Cryptocurrency/  Cryptocurrency prices today: Bitcoin, Ethereum plunge. Check latest rates
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Cryptocurrency prices today: Bitcoin, Ethereum plunge. Check latest rates

Bitcoin, the largest cryptocurrency, slipped by 0.01% to $42,358.48. Its main rival, ether, is down by 0.43% to $2,921.15

An advertisement displays a Bitcoin cryptocurrency token at a subway station in Hong Kong, China. (Bloomberg)Premium
An advertisement displays a Bitcoin cryptocurrency token at a subway station in Hong Kong, China. (Bloomberg)

Investors are bracing for more gyrations in bitcoin and other cryptocurrencies, as worries over a hawkish Federal Reserve threaten to squelch risk appetite across markets.

The global crypto market cap is $1.90 trillion, a 0.24% increase over the last day. The total crypto market volume over the last 24 hours is $64.71 billion, which makes a 27.26% decrease, data from coinmarketcap.com shows.

Bitcoin, the largest cryptocurrency, slipped by 0.01% to $42,358.48. Its main rival, ether, is down by 0.43% to $2,921.15.

Other cryptocurrencies such as BNB was up by 0.22%, Solana is up by 0.93 per cent, Terra is up by 3.04%, Avalanche was up by 0.38%.

The volatility traditionally associated with cryptocurrencies has been on full display in recent weeks.

Their recent volatility has come amid a broader market selloff driven by investors recalibrating their portfolios to account for a more aggressive Fed, which is now expected to raise rates as many as seven times this year as it fights surging inflation.

Worries that an aggressive central bank tightening cycle going forward will hamstring risky assets has made it difficult for some traders to maintain their bullish outlook on bitcoin and other cryptos, an asset class already identified with intense volatility.

Escalating tensions in Ukraine, where Washington warned a Russian invasion could begin any day, could also spark broad market moves, investors said.

Bitcoin has "really become the ultimate momentum trade and there are so many risks that can trigger a 40% drop out of nowhere," said Ed Moya, senior analyst at Oanda.

Bitcoin's volatility hasn’t stopped some analysts from trying to gauge the currency’s fair value or point out potentially important price levels.

Analysts at JPMorgan estimate bitcoin’s current fair value at around $38,000 – some 15% below its recent price – based on its volatility in comparison with that of gold, another asset investors often use to hedge their portfolios against inflation and economic uncertainty.

Cryptocurrencies "are going to remain very volatile going forward, but there are significant players on both the institutional side and the retail side that are still growing, so the interest is still growing," said Oanda's Moya.

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Published: 13 Feb 2022, 03:28 PM IST
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