A wave of “panic” hits the cryptocurrency market and shakes Bitcoin

How the market got it wrong in predicting Bitcoin 2023

Cryptocurrencies fell on Monday, amid a bout of anxiety sweeping investors in global markets sparked by protests in China against Covid restrictions.

The largest cryptocurrency at one point in the session was down 3.2%, trading at around $16,170 as of 12:40 p.m. in Tokyo. Ether fell about 4%, while currencies such as Solana, Avalanche and Dodge Coin suffered bigger losses.

The total value of losses in the cryptocurrency market during the past 24 hours amounted to about $ 45.44 billion, representing a 29.10% increase in the volume of losses from the previous day, according to what was seen by “Arabiya Net”, on the CoinmarketCap website.

The turmoil fuelled by China comes during a period of weakness for cryptocurrency markets, which are on edge due to the spread of the contagion of the fall of Sam Bankman Fried’s FTX exchange and research subsidiary Alameda.

The drop in crypto assets came on Monday, amid declines in Asian stocks and U.S. stock futures. Katrina Il, chief economist at Moody’s Analytics, said in an interview on Bloomberg TV that Beijing’s ongoing “zero Covid” policy is an obstacle to stabilizing domestic demand.

Hayden Hughes, CEO of social trading platform AlphaImpact, said markets may also be concerned that the turmoil in China will lead to further restrictions on the supply chain globally. Such crises can make inflation harder to beat, making interest rates higher.

Bitcoin is down about 21% so far in November, its worst monthly performance since June, according to Bloomberg.

The collapse of FTX — which previously boasted a valuation of $32 billion — continues to threaten a wider crypto asset sector.

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