The cryptocurrency market is trading in the red on Friday. The global cryptocurrency market capitalisation plunged more than 5% to stand below the $2 trillion mark at $1.98 trillion, as per CoinGecko.
Meanwhile, Bitcoin is continuing to suffer to trade below the $39,000 level. Bitcoin has plummeted more than 14% since the start of the year. Ether, the digital currency linked to the ethereum blockchain also suffered standing below the $3,000 mark. As per CoinDesk, the second-largest cryptocurrency underwent a downfall of more than 8% to trade at $2,861. Ether rose over 400% last year as compared to the gain of 60% for Bitcoin. However, Ether is down over 18% in January.
Memecoin SHIB fell about 7% to trade at $0.000026 while Dogecoin plunged over 8% to $0.15. Besides, Binance Coin at lower at $423 which was down by 9%.
Other major cryptos like Cardano declined more than 11% whereas XRP, Polkadot, Tether, Litecoin Solana, Terra, Stellar traded between 3-10% over the last 24 hours.
Moreover, the cryptocurrency industry has suffered several regulatory hostilities in recent times with the rising doubts and concerns towards the rapid growth of digital assets spreading across the globe.
US Securities and Exchange Commission aims on cracking down on digital assets with a special focus on crypto exchanges in 2022. Also, the Central Bank of Russia today announced a blanket ban on cryptocurrencies in the country calling them “volatile and widely used in illegal activities” and a threat to the financial stability of the country along with citizens’ wellbeing and the sovereignty of its monetary policy.
Crypto funds saw the fifth straight week of outflows as per the report by the digital asset manager of CoinShares. Besides, digital asset investment products saw net outflows of $73 million for the week ended January 14.
