London, (Business News Report)| Cryptocurrencies’ market value tumbled to $1.66 trillion, Thursday morning, in light of a collective drop in digital currencies.
Chainlink and Polkadot led the collective decline of digital currencies, losing about 9% of their value.
Meanwhile, the two most popular currencies, Bitcoin and Ethereum, fell by 4%.
The decline in cryptocurrencies’ market value comes amid a wave of selling of high-risk assets. It has been going on for more than a week after the Federal Reserve announced its intention to raise interest rates starting next March.
Fears of an attack by Russia on Ukraine have also caused the sale of high-risk assets to continue at a rapid pace around the world.
According to Bloomberg, the shift away from high-risk assets was the main focus in the markets, with expectations of a sharp cut in quantitative easing policies following the emergence of a series of frenetic inflation data.
Bloomberg indicated that digital asset investment products suffered from outflows for the first time since last August. The average weekly outflows reached $88 million until the end of January.
The total assets of Bitcoin products under management have also fallen by about 23% since December.
It is as if the tragedy of February 2021 is being repeated, when the same collapse hit digital currencies. Bitcoin at that time recorded $42,000, down from a peak recorded in previous months.
On the other hand, analysts at JP Morgan Chase lowered Bitcoin’s long-term price target from $150,000 to just $38,000. This is amid fears of a bigger response from global central banks toward the leading virtual currency.
Long-term analysts expected the price of Bitcoin to approach $150,000 in a report last month. They said that the figure may be possible as cryptocurrency volatility declines and institutional investors prefer bitcoin to gold.
Prices
- Bitcoin fell by 4.08% to $36,885.78.
- Ethereum fell by 4.72% to $2,643.19.
- Binance coin fell by 3.98% to reach $366.40.
- Cardano coin fell by 4% to record $1.03.
- Ripple XRP fell by 3.78% to $0.603505.
- Polkadot coin fell 8.9% to $18.40.
- Dogecoin fell 3.48% to $0.137807.
- Litecoin fell 5.06% to $108.49.
- Chainlink coin fell 9.82% to $15.63.
