01 Sep , 2022 By : Kanchan Joshi
Cryptocurrency prices today plunged with Bitcoin hovering around $20,000 once again, as hawkish comments from the Federal Reserve about inflation and the economic slowdown continue to weigh on riskier assets. The world's largest and most popular cryptocurrency was trading about a per cent lower at $20,073. The global crypto market cap today was back above the $1 trillion mark, even as it was down over 2% in the last 24 hours at $1.02 trillion, as per CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, declined more than 3% to $1,555. Meanwhile, dogecoin price today was also trading 3% lower at $0.06 whereas Shiba Inu fell about 2% to $0.000012.
“If the selling pressure continues and BTC closes below the $20,200 level today, we might see BTC re-test the $20,000 mark soon. If buyers lose control over the $20,000 level, the next level would be $19,000. The second largest cryptocurrency, Ethereum, was also seen to be trading above the 1,500 level. ETH may likely break above the $2,000 level before the Merge," said Edul Patel, CEO and Co-founder of global crypto investment platform Mudrex.
Other crypto prices' today performance also declined as Chainlink, Apecoin, XRP, Uniswap, Tron, Binance USD, Solana, Polkadot, Avalanche, Tether prices were trading with cuts over the last 24 hours, whereas Litecoin, Polygon, Stellar gained slightly.
The $20,000 level acted as support for Bitcoin when it hit lows in recent months, although the cryptocurrency had worked its way higher over the last few weeks. Many analysts see it as an important psychological threshold, with a drop below it potentially signaling further losses, reported Bloomberg.
Data by CryptoCompare showed that global crypto funds based on assets that come under the umbrella of ‘other’ (representing non-bitcoin and ethereum products) saw the largest asset under management (AUM) gains, rising 12.3% to $1.13 billion as of 23 August.