Cryptocurrency prices continued to fall, with the world’s largest and most popular cryptocurrency, bitcoin, down more than one percent and trading at $20,069. According to CoinGecko, the global cryptocurrency market cap was below $1 trillion today, having fallen by more than 3% to $929 billion in the past 24 hours.
Ether, on the other hand, is the coin linked to the Ethereum blockchain and the second largest cryptocurrency, fell more than 5% to $1,092. Meanwhile, Dogecoin price was trading up almost 2% at $0.06 today while Shiba Inu rose marginally to $0.0000010.
Today’s performance of other crypto prices also declined as XRP, Tether, Solana, BNB, Litecoin, Stellar, Chainlink, Tron, Apcoin, Polygon prices were trading with cuts in the last 24 hours, while Uniswap rose.
US regulators have denied Grayscale Investments LLC’s bid to convert the world’s largest crypto trust into an exchange-traded fund. The Securities and Exchange Commission (SEC) said in a filing that the ETF’s proposal to list does not meet a standard designed to prevent fraud and manipulative practices and protect investors and the public interest.
In another news, a British Virgin Islands court ordered the liquidation of Three Arrows Capital, the crypto hedge fund that made big bets on everything from bitcoin to the ominous Luna token, and then went on to wipe out $2 trillion of the digital-asset market. Succumbed.
The fund’s liquidity crunch is one of a series of crises that ripped through the battered crypto sector during this year’s recession, including liquidity issues at the TeraUSD stablecoin and lenders Celsius Network and Babel Finance.
Three Arrows’ crisis has affected firms such as crypto broker Voyager Digital Ltd, which said this week that it had issued a notice of default to Three Arrows after failing to receive repayment on a loan of about $675 million.
Cryptocurrencies have suffered this year amid a hike in Federal Reserve rates and extremely high inflation. After crypto’s last two years of hibernation ended in 2020, the sector reached nearly $3 trillion in total assets last November, before falling to just under $1 trillion last November. Investors were further worried about the collapse of the Terra/Luna ecosystem and continued concerns about hedge fund Three Arrows Capital Ltd.
(with inputs from agencies)