The bitcoin exchange rate has dropped to $45 000

The collapse came amid the uncertainty caused by the COVID-19 Omicron strain and the growing dissatisfaction with the Federal Reserve System

04.12.2021 - 08:30

365

1 min

What’s new? On the morning of December 4, the price of bitcoin fell heavily. The rate dipped to nearly $42 000 at the moment before rebounding to $47 000. Ethereum was down about $1100. At the time of writing, bitcoin is trading just above the $47 000 mark, according to the CoinGecko data.

Source: Coingecko

What caused the decline in the rate? The collapse came amid the uncertainty caused by the COVID-19 Omicron variant and the growing dissatisfaction with the Federal Reserve System (FRS) over the high inflation. The selling on the spot market drove cryptocurrencies lower and then triggered huge stop losses in the derivatives markets.

What other assets have lost value? Some cryptocurrencies have fallen by more than 20% in the last 24 hours namely Polkadot, XRP, Cardano, Dogecoin. According to CoinGecko, the total market volume now stands at around $2 trillion. The drop in the prices resulted in about $600 million worth of bitcoin futures positions being closed in less than an hour.

Author: