Cryptocurrency prices are crashing, with Bitcoin falling to its lowest level in 2022.
Crypto has been falling fairly consistently for the past month, but has been tumbling rapidly over the last week.
Most major coins have lost around 5 per cent on their value in the last 24 hours. Bitcoin is now worth less than half of its all-time high, which is reached just six months ago.
Here’s where the most popular coins are currently valued and what is behind the crash.
What are Bitcoin and other cryptocurrencies worth?
Here is the price of the top cryptocurrencies as of Monday 9 May:
- Bitcoin – $32,700 (£26,500)
- Ethereum – $2,390 (£1,940)
- XRP – $0.53 (£0.43)
- Solana – $70.80 (£57.50)
- Cardano – $0.66 (£0.54)
- Dogecoin – $0.116 (£0.094)
- Shiba Inu – $0.000016 (£0.000013)
- Litecoin – $86.50 (£70.30)
Why is crypto crashing?
Around $300bn wiped from the value of the cryptocurrency market over the last four days.
Experts have suggested $30,000 could be a key level of support for Bitcoin, and that the market could continue to tumble if the world’s largest cryptocurrency dips below this threshold.
Rising interest rates, brought in to combat soaring global inflation, are party to blame for crypto’s struggles.
Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of uncertainty.
Darshan Bathija, chief executive of Singapore-based crypto exchange Vauld, told Bloomberg: “In light of fears of rising inflation, most investors have taken a risk-off approach – selling stocks and cryptos alike in order to cut down risk.”
“In light of fears of rising inflation, most investors have taken a risk-off approach – selling stocks and cryptos alike in order to cut down risk.”
Simon Peters, crypto market analyst at the online trading platform eToro, said: “The concern now for crypto asset investors is when the slide will end.
“The market is caught in the wider adversity of investment markets that are battling to decide where confortable levels are in the wake of interest rate hikes designed to quell soaring inflation around the Western world.”
How risky is cryptocurrency?
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority (FCA) warned in January: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown previously explained the risks to i.
She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”
