Bitcoin, ethereum, Ripple XRP, Solana and Cardano prices plunge in $250 billion crypto crash

Crypto investors were lulled into a false sense of security after a steady three weeks, but now cryptocurrency has plunged again.

A major cryptocurrency crash has wiped away the gains made in the last three weeks, sending the values of the digital tokens plummeting to dangerously low levels.

Crypto prices tanked overnight, with the most popular ones falling by as much 13 per cent.

In total, cryptocurrency’s market cap dropped by eight per cent, from US$2 trillion (A$2.7t) to U$1.84 trillion (A$2.5t).

That represents an eye-watering loss of US$160 billion. (A$215b).

Terra’s LUNA coin slid the most out of the top 10 crypto tokens, plunging 13 per cent in the past 24 hours, and 28 per cent over the past week.

Avalanche fell by 12.6 per cent, Solana by 13 per cent and Cardano by 12 per cent.

Bitcoin and ethereum, the two most valuable crypto tokens, also took a serious battering.

Ethereum was down 9.7 per cent, worth just US$2,989 at time of writing.

Bitcoin has also massively declined, down eight per cent to come in at US$39,578.

For the past three weeks, cryptocurrency has held steady, particularly bitcoin, so the latest drop has sent shockwaves around the industry.

BTC’s price peaked for the year at $48,200 on March 28 but now, just a few weeks later, it is once again tragic.

Analysts believe crypto investors are spooked as markets around the world lose their steam.

In Asia, the Hang Seng closed down three per cent on the day in Hong Kong, while the Shanghai Composite Index finished 2.6 per cent lower.

Germany’s DAX traded 0.77 per cent in the red at the time of writing, as did London’s stock market.

Australia’s ASX is expected to dip when it opens this morning.

Tony Sycamore, senior market analyst at City Index, said in a note to news.com.au: “Bitcoin has cratered to be trading at $39,446 (-6.36 per cent) in line with the sharp fall in US equities.

“As we continue to note, Bitcoin is a risk asset, tightly linked to the performance of US equities and, in particular, the Nasdaq.

“Both have benefitted from an extended period of ultra-easy monetary policy and excessive liquidity, which is now being hastily removed.”

Another explanation for the drop could be new bans imposed on cryptocurrency as Russia continues to try to evade economic sanctions amid its illegal invasion of Ukraine.

Just before the weekend, the European Union banned the use of cryptocurrency services to Russia.

The new rule blocks deposits to Russian crypto wallets — including popular cryptocurrencies like bitcoin, ethereum, BNB, XRP, cardano, solana and luna.

It came after the European Central Bank president Christine Lagarde warned that cryptocurrencies posed a “threat” to efforts to curb Russia’s economy.

The EU will put “a prohibition on providing high-value crypto-asset services to Russia,” the European Commission announced.

They added: “this will contribute to closing potential loopholes.”

India’s cryptocurrency industry could also be dragging down the overall market.

Crypto research firm Crebaco found trade volumes had dropped massively in the country ever since a new tax rule was introduced on April 1.

India now requires a 30 per cent tax on any profits generated from cryptocurrency transactions and doesn’t allow offsetting gains with losses, according to CoinDesk.

Read related topics:Cryptocurrency

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How to buy, trade cryptocurrency beginners guide

There are countless coins, and even more ways to buy and sell them. So how do you get started? We had an expert weigh in.

Cryptocurrency has taken Australia by storm.

More than 20 per cent of adults across the country are thought to own some form of crypto, and rises and falls in the market regularly make for big news.

But with so many options for coins to invest in, and wallets to trade out of, it’s hard to know how to get started.

Comparison website Finder has crunched the numbers to find the best of the best exchanges, with the aim of making the hi-tech currency accessible for everyday Australians.

An exchange is a platform on which you can buy and sell cryptocurrency. They can be used to buy crypto with regular currency or convert crypto back to a dollar value – essentially they reflect the market price of cryptocurrency.

But, much like the coins, there are hundreds of exchanges; some fantastic and legitimate, and others … not so much.

Best exchange for beginners

Crypto expert James Edwards is one of many who reaped the rewards from the new technology.

He bought half a Bitcoin in 2014 for around $350, that same amount of Crypto is now worth about $30,000.

The self-described ‘nerd’ now works researching cryptocurrency for Finder, which has designed an awards system to help simplify information for those just wanting to learn more about the currencies.

According to the review site, Crypto.com was rated the best exchange for beginners.

“The awards were based on a range of criteria rather than someone or some people just picking. For example, Crypto.com scored highly because they have a good smartphone application, it’s easy to use, good customer support and you can set up recurring payments,” he told news.com.au.

“Another thing we wanted to do was only rank companies that are registered with AUSTRAC.”

Binance won three awards, including Exchange for Features and Exchange for Altcoins, as well as the award for Australian cryptocurrency Exchange (Overall).

Crypto.com won the category ‘Exchange for Beginners’, while Kraken won ‘Exchange for Trading’.

Meanwhile the award for ‘Exchange for Value’ went to Digital Surge, with CoinJar and Crypto.com a close second.

How to invest in cryptocurrency

Mr Edwards recommends for those wanting to dip their toes into Crypto should try the dollar-cost averaging method as their investment strategy.

This method theoretically helps prevent the massive highs and lows of the sometimes volatile coins.

“To do this, you need to set aside a certain amount of money and invest it at the same time each week. For example, you pick a time on a Friday morning where you invest $50 into coins,” he said.

“This helps take the emotion out of your investments, as it is just something you do each week. But it really just works in removing any timings related to the market, you’re not chasing the lows.”

What cryptocurrency to invest in?

With thousands, if not millions, of cryptocurrencies on the market, it can be intimidating to get started.

The most popular coins are Bitcoin, Ethereum, Tether and Binance which are all a solid starting point for your investments.

Mr Edwards identified Ethereum as a popular first choice with many investors, after Bitcoin

“Ethereum is good as it can be described as a layer of the internet, not just a currency. Ethereum is a popular first choice with many investors, after Bitcoin” he said.

“The next, or latest, version of the internet is called Web 3. This is going to be based on things like Eth. The Crypto is allowed to hold computer code and creates this hyper-secure layer which was previously very difficult on the internet.

“The layer of security enables people to be confident with the finances and financial services.”

He added to be wary of things that are too good to be true.

“For people just starting out, the best thing you can do is read and learn from reputable sources. What is really important is looking at who is providing the information and whether they are influencers or have something to gain from you buying their product,” he said.

Finder’s head of consumer research, Graham Cooke, said Australia’s enthusiasm for cryptocurrency has driven its growth.

“Cryptocurrency awareness in Australia is among the highest in the world. 85 per cent of Aussies say they know what cryptocurrency is, much higher than countries like the United States (59 per cent) and the United Kingdom (55 per cent),” he said.

It comes as ‘meme coin’ Shiba Inu rockets in value.

The surge comes amid a broad recovery in crypto with Bitcoin’s value going up to just under US$44,000 (A$61,000) and Ether’s price now at US$3,100 (A$4300).

SHIB tokens surged to $0.0000342 from the $0.000022 over the last day while Dogecoin jumped to $0.1661 from $0.145. Both SHIB and Dogecoin were based off popular internet memes.

The move caused nearly $10 million in losses to liquidations for traders of SHIB-tracked futures products, according to Coin Desk.

After becoming one of the dominant meme currencies of 2021, Shiba Inu’s value had been on a downward trend for the most part since late October.

On October 28 last year, Shiba hit an all-time high of $0.00008845.

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Bitcoin price: Crypto market plummets over $200 billion as world governments step in

The cryptocurrency market has suffered another “chaotic” 24 hour period, with $200 billion wiped off the market overnight.

The cryptocurrency market has suffered another brutal day, losing over $200 billion in value over the past 24 hours with major coins copping the worst of the crash.

Bitcoin and Ethereum, the world’s two most-traded digital assets, went into another freefall on Wednesday, with smaller coins BNB, Solana, Cardano and XRP also suffering significant losses.

Bitcoin’s price crashed almost 10 per cent over the last 24 hours, dropping to under $54,000 (AUD) for the first time in well over six months.

The price of ethereum, BNB, solana, cardano and XRP also experienced significant drops of between 7 to 11 per cent in the last 24 hours.

Still in its relative infancy, the cryptocurrency market has faced similar tumultuous periods where large chunks of value disappear overnight.

Experts in the field believe values have dropped as a result of the US Federal Reserve raising rates in 2022, alongside heightened pressure from China and Russia to stifle digital currency trading within their borders.

The Chinese government’s widespread crypto ban in 2021 saw the country expel those who use high-powered computers to mine new coin. The result sent bitcoin and crypto prices spiralling, with the downward trend continuing steadily in the first few weeks of 2022.

“I think the main reason for this is the market being spooked by the Federal Reserve raising rates this year, but when the stock market sees some relief, I expect a strong squeeze to the upside for bitcoin and the whole market,” analyst at UK-based broker GlobalBlock Marcus Sotiriou wrote this year.

The wild west nature of the crypto sphere has attracted millions of new investors buying in over the past 12 months. A brief period in early 2022 saw Bitcoin break new ground, soaring to over $80,000 AUD per coin after Elon Musk’s persistent endorsement of the revolutionary technology.

CEO and Co-founder of Mudrex Edul Patel says the current dive-bomb, which he believes has come from a lack of demand amid soaring inflation in the West, has left casual investors in a state of panic.

“The downward trend is likely to put investors in a chaotic situation. The fall of significant cryptos can be attributed to lower demand, inflation, and seasonality. The coming week would be vital for the crypto spectrum,” he told the Economic Times.

In Russia, life is about to get a lot harder for those deep in the crypto sphere, with the government making serious moves against what has become a $7 billion yearly market in the country of 143 million.

According to a report released by the country’s central bank on Thursday local time, cryptocurrency mining and trading goes against Russia’s green agenda and can be used in money laundering or to finance terrorism.

Cryptocurrency has a lot in common with a pyramid scheme, according to the bank, which also called for crypto rule breakers to face the full penalty of the law.

Although the bank’s suggestion to clamp down on cryptocurrency is just that — a suggestion — Russia appears to be fast-tracking parliamentary sessions so that a potential ban could come into effect as soon as possible.

Speaker of the lower house of parliament Vyacheslav Volodin revealed this week that politicians were creating a regulatory framework on cryptocurrency that will be ready in time for the Russian parliament’s spring session.

Under the proposal, cryptocurrency wouldn’t be able to be created, mined or traded on Russian soil — including blocking customers from using crypto exchange platforms.

Russians with offshore accounts would still be able to trade cryptocurrency.

If Russia’s proposal to go ahead, it would be a major blow to the cryptocurrency market around the world.

Russian citizens make up the third-largest number of crypto miners, behind the US and Kazakhstan.

Blockchain miners have made the most of Russia’s unique resources to maximise their mining, with people flocking to the country’s north and Siberia to mine blockchain, because power is cheap over there.

“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,” the central bank said.

But according to the research team at CoinCDX, India’s largest crypto trading platform, digital assets have endured years of similar suppression from world governments, tipping the decentralised currencies to rise again in the future.

“As Russia-one of the largest crypto adopters in the world-announced its plans for a blanket ban on crypto, the digital asset market plunged back into the reds. BTC and ETH took sharp dips, dropping 2.54% and 3.62% respectively over the past 24 hours,” CoinCDX said in a statement.

“Other altcoins from BNB, ADA, and SOL also nosedived with yet another economic powerhouse taking a hard stance against crypto.

“While this may be a cause for concern, the crypto industry has weathered through multiple bans, restrictions and regulatory scrutiny over the years but have stood the test of time.

“Looking back at how the sector bounced back shortly after China’s crypto ban, we can expect the sell-off to have little long-term impact on crypto’s performance besides this brief initial dip.”

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