look news india
Mumbai: Cryptocurrencies witnessed a sell-off in the market after the dollar strengthened against global currencies. The leading crypto Bitcoin fell by more than $2,500 in the last twenty-four hours and was trading at $63,775 late in the evening. Other cryptos including Ethereum also softened behind Bitcoin. Ethereum's price was fixed at $3498.
The dollar index ended the week at an eight-week high of 105.71. Generally, a rise in the dollar index leads to a negative trend in Bitcoin. An increase in the dollar index indicates a strengthening of the US dollar.
As the dollar index rises, investors are also moving out of risky assets and turning to the dollar, market circles said. There have been withdrawals of $900 million from spot bitcoin ETFs in the current week.
Exposure to Bitcoin is also being reduced by crypto hedge funds. The potential for volatility, macroeconomic conditions and regulatory uncertainties are also fuelling the sell-off in crypto.
In the last 24 hours, the global market cap of crypto dropped to $2.36 trillion.