Huge fall in crypto market, Bitcoin price below $96,000

The US Federal Reserve’s refusal to include Bitcoin, the largest cryptocurrency by market value, in its reserves has had a major impact on the crypto market. There was a loss of more than six percent in Bitcoin on Friday and the price of this most popular cryptocurrency was at a little more than $ 95,000. The markets are also down due to the Federal Reserve’s decision to reduce interest rates only twice next year.

The price of Ether, the second largest cryptocurrency, was down more than 10 percent at around $3,292 on the international crypto exchange Binance. Solana had a loss of more than 12 percent and its price was trading at just over $182. Other cryptocurrencies that declined included Tether, Binance Coin, Tron, Polkadot, Near Protocol and Cronos. In the last one day, the market capitalization of crypto had declined by more than four percent to about $ 3.30 trillion. Bitcoin’s share in this market is more than 50 percent.

During the presidential election campaign in America, Trump had hinted at creating a reserve of Bitcoin in America. Due to this, the price of this most popular cryptocurrency had increased significantly. However, the Federal Reserve says it does not intend to join the government’s plan to create large stocks of Bitcoin. “We are not allowed to buy Bitcoin,” the head of the Federal Reserve, Jerome Powell, said. On the legal issues regarding creating a reserve of Bitcoin, he said, “Congress has to consider this but we are not considering changing the law for this in the Federal Reserve.”

The price of Bitcoin has increased more than double this year. Earlier this week, this most valued cryptocurrency had created a new high level of more than $1,08,000. The interest of institutional investors in Bitcoin is also increasing. Enterprise software maker MicroStrategy has bought a large number of bitcoins in the last few weeks. The company purchased approximately 15,350 bitcoins worth approximately $1.5 billion between December 9 and December 15. For this, MicroStrategy has paid a price of a little more than $ 1,00,380 per bitcoin. The company’s share price has also benefited from increasing investors in the crypto segment.