The majority of the cryptocurrencies were trading mixed on Tuesday. However, the flagship currency dragged down towards $23,368, after rising $24,000 on Monday.
Bitcoin, the leading cryptocurrency, dropped 2.68 percent and traded at $23,402, according to Coindesk data at 16:54 IST. Since its record high of $69,000 in November and now it has slumped about 75 percent.
Ether, the second largest cryptocurrency in terms of market capitalization, fell 2.78 percent to 1,721 over the previous day. It rebounded considerably in July, gaining 36 percent and 102 percent, respectively, from their mid-June lows.
Other popular altcoins, which tend to move in tandem with bitcoin, also fell slightly. Shiba Inu, the second-largest meme coin, fell 2.77 percent to $0.000012 however the most followed meme coin Dogecoin rose 0.44 percent to $0.070763.
The global cryptocurrency market cap decreased to 2.53 percent to $1.10 trillion in the last 24 hours. One the flip side, the total cryptocurrency trading volume increased 32.50 percent to $72.70 billion.
Meanwhile, out of a total market cap, bitcoin's dominance is 40.54 percent, a decrease of 0.4 percent over the day, as per CoinMarketCap data at 16:57 IST.
Ajoy Pathak, Blockchain Evangelist with CryptoWire said, “The crisis in China-Taiwan-USA would prove to be a larger economic problem for the world than the Russia-Ukraine war currently going on. This will also adversely affect chip production and supply and hurt the progress of the digital economy in a major manner.”
“The position of the South China sea and its importance in global trade will also adversely impact trade of every major commodity value chain and could possibly disrupt many supply chains triggering deeper inflationary pressures and larger recessionary forces in the global economy,” he added.
