Bitcoin plunges over 9%; biggest intraday fall

Bitcoin plunges over 9%; biggest intraday fall

KARACHI: The major digital currency i.e. Bitcoin (BTC) on Thursday fell over 9 per cent, the biggest intraday fall following the Federal Reserve’s meeting on Wednesday faded.

The Bitcoin fell around 9.04 per cent to trade at $36,431.02 at 12:48AM Pakistan Standard Time (PST) as compared with previous day’s closing of $39,724.39.

READ MORE: Bitcoin to Pak Rupee on May 05, 2022

The digital currency against the Pakistan Rupee (PKR) also retreated by 9.02 per cent and is trading at Rs 6,765,240.51 in intraday trading as compared with previous day’s closing of Rs 7,375,301.74.

Reportedly, Ether slumped as much as 7.2 per cent. Avalanche and Solana, among some of the largest gainers after the U.S. central bank raised rates Wednesday, were down as much as 11 per cent and 7.3 per cent, respectively.

READ MORE: Bitcoin to Pak Rupee on May 04, 2022

Aljazeera reported that the U.S. central bank’s policy-making Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point and said it will begin allowing its holdings of Treasuries and mortgage-backed securities to roll off in June. Risky assets surged after Fed Chair Jerome Powell said a 75-basis point increase is “not something that the committee is actively considering.”

READ MORE: Bitcoin to Pak Rupee on May 03, 2022

Still, in this higher-rate environment, Bitcoin hasn’t been able to break out in any meaningful way beyond its highs at the start of the year. The coin has largely traded within a tight range over the past few months.

Analysts said that technical picture in BTC remains poor, in spite of a less hawkish Powell, BTC failed to regain 40,000, hence this pull back.

Money has been flowing out of the sector amid the malaise. Investors yanked roughly $120 million from crypto products last week, bringing total outflows over the past four weeks to $339 million, analysts added.

Bitcoin last week accounted for the majority of the flows in what was its largest single week of outflows since June 2021.

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