World's largest cryptocurrency Bitcoin fell nearly 9% today as hawkish minutes from the Federal Reserve's December meeting hit global risk assets. The price of Bitcoin slipped 8.88% to $42,654 on Coinmarketcap. Market cap of the cryptocurrency fell to $808.445 billion. Currently, the global crypto market cap stands at $2.02 trillion, a decline of 10.12%.
Other cryptocurrencies were also trading in the red today. Ethereum fell 12.91% to $3343 and Dogecoin was trading 8.19% lower at $0.1563.
Digital token Stellar declined 8.73% to $0.2676 and Litecoin fell 9.96% to $134.37.
XRP slipped 10.20% to $0.7478 and Uniswap crashed 13.63% to $16.38. The fall in cryptocurrencies is in line with the crash in global markets.
Global stocks and Wall Street futures tumbled after investors saw minutes from a Federal Reserve meeting as a sign the U.S. central bank might hike interest rates faster to cool inflation. In early trading, the FTSE 100 in London lost 1.1% to 7,435.95. Frankfurt's DAX fell 1.4% to 16,046.83 and the CAC 40 in Paris sank 1.6% to 7,255.16.
On Wednesday, the S&P 500 slid 1.9% and the Dow sank 1.1%. The Nasdaq composite tumbled 3.3% in its biggest one-day decline in 11 months.
In Asia, the Nikkei 225 in Tokyo fell 2.9% to 28,487.87 and the Shanghai Composite Index lost 0.2% to 3,586.08. The Hang Seng in Hong Kong ended up 0.7% at 23,072.86 following a rally late in the session. Meanwhile, former Twitter CEO Jack Dorsey last year said that cryptocurrency Bitcoin will replace the US dollar. Dorsey has been a big supporter of Bitcoin. He is also the co-founder and CEO of financial services company Block, formerly known as Square Inc.
Of late, crypto prices have risen on the back of comments from billionaire Elon Musk and Ark Investment Management LLC's Cathie Wood. In late July, Elon Musk said Tesla was "most likely" to start accepting bitcoin as payment again.
The comment helped the cryptocurrency race past the $30,000 level. The electric carmaker said in May 2021 that it would no longer accept the cryptocurrency for purchases. It's been a wild ride for bitcoin the last three years.
The digital currency made its big Wall Street debut in December 2017, when the major futures exchanges rolled out Bitcoin futures. The attention drove Bitcoin to roughly $19,300, a then-unheard of price for the currency.
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