Ether, the crypto-related to ethereum’s blockchain and the second-largest cryptocurrency, plummeted as much as 9% to its lowest level since September 30.
The price of Bitcoin continued to plummet throughout the day, dropping below $42,000 for the first time since September.
Since peaking at almost $69,000 in November 2021, Bitcoin has lost over $27,000 or 40% of its value. The digital currency dropped 4.9 percent to $41,008.
Meanwhile, the coin linked to ethereum’s blockchain, Ether, tumbled as much as 9% to its lowest level since September 30.
In the past week, other digital assets like Binance Coin, Solana, Cardano and XRP have all dropped by more than 10%. According to CoinGecko, the worldwide crypto market capitalization fell by more than 4% to $2.08 trillion.
Last year, Bitcoin grew by 60%, far outpacing other investment classes. Ether, on the other hand, has benefited from the success of blockchain technology by financial technology firms, and more significantly from the use of non-fungible tokens (NFTs) in the art and gaming industries.
Binance Coin had the best return out of all the largest cryptocurrencies, increasing by more than 1,300% in 2021.
The recent swings in bitcoin and other cryptocurrencies have occurred during an uncertain time for the financial sector.
Inflation is spiking, forcing central banks to tighten their monetary policy, which could result in the liquidity windfall that helped a wide range of assets.
According to data from Blockchain.com, the Bitcoin hash rate, a metric of network computing power, decreased to 176 million terahashes on Thursday, down from a high of about 208 million on January 1.