In total 97 out of 100 cryptocurrencies were being traded in the red territory and the three exceptions were stablecoins that are exchanged to the currency while advancing no greater than 0.1 percent each.
On 18th February, early in the morning, the Bitcoin as well as the entire crypto market took the hammering in the early deals when the momentum had subdued earlier in that week.
Miners of cryptocurrency are now offloading Bitcoin for maintaining cash reserves when the top digital coin reached to a new peak amid the mining difficulty that means that the competition is more than what was anticipated among the miners for confirming a block as well as extracting the block reward.
What is more, Glassnode, a leading crypto analyst warned through its report that the digital tokens are facing a long period of lingering uncertainty because of the “storm clouds” of the increasing inflation that is approaching, hiking of interest rates and of course, the uncertainty over the war-stricken Ukraine.
Further hitting the sentiment, the FSB (Financial Stability Board) stated that the cryptos might pose threat to the financial stability across the globe soon and it intensifies the concern over additional regulation.
FSB is an international agency monitoring and making recommendations on global financial system. It also added that the crypto asset market might come to a point when they start representing threat to the financial stability of the world because of their structural vulnerabilities, scale, as well as ever-growing interconnectedness with the conventional financial system.
Within twenty four hours, Bitcoin plunged to 7.2 percent i.e. below the recent key support level to USD 40684. On the other hand, Ethereum, the closest rival of BTC dropped down 6.1 percent to USD 2904.
Meanwhile, Morning Consult made a report stating that the young investors were taking alternative financial methods like crypto for boosting their financial stability during January. As Ethereum and Bitcoin are over forty percent down from the all-time highs as seen in November, the young investors hunted for bargains presumably.
On 18th February, elsewhere, the popular Altcoins like Avlanche, Terra and Solana were losing 6.3 percent, 9.6 percent and 5.5 percent respectively and became listed among fallers.
Besides the top ten, Litecoin, Near Protocol and Wrapped Bitcoin slipped 7.7 percent, 7.5 percent and 7.3 percent respectively.
Meme dog themed Shib Coin Shiba Inu and Dogecoin eased 8.3 percent and 5.3 percent respectively.