Cryptocurrency Market Joins Selling After Federal Reserve Report: How Do Cryptocurrencies Work?
With the year opening to trade sideways, the cryptocurrency markets experienced their biggest drop since the sudden crash in December. The cryptocurrency market selloff has seen more than $200 billion wiped out from the global cryptocurrency market cap.
Total market value over the past six months. Source: Tradingview
With the number of cryptocurrencies dropping in double digits, the global cryptocurrency market cap has reached its lowest level since September 2021. While cryptocurrency markets are known to be volatile, a decline of this magnitude has been associated with certain events.
Fed Report Spark Market Recession
In December, reports from the Federal Reserve’s December session indicated that the US would halt stimulus efforts and interest rate hikes in 2022. With the confirmation of this report, global stock markets slid into a downturn.
Joining the global stock markets after hours, the volatility of the cryptocurrency markets has once again been highlighted. The crypto market is down more than 10% of its cumulative value. The market, which had a $3 trillion valuation in November, is now $2.035 trillion.
within the past 24 hours;
He lost 7%, and is now trading at $42,981
Bitcoin (BTC) 24 hour price chart. Source: Tradingview
It is down 11% and is now trading at $3,374
Ethereum (ETH) 24 hour price chart. Source: Tradingview
(BNB) lost 9% and is now trading at $465.5
Binance (BNB) 24-hour price chart. Source: Tradingview
It lost 12% and is now trading at $148.46
Solana (SOL) 24-hour price chart. Source: Tradingview
(ADA) lost 8.5%, and is now trading at $1.21549
Cardano (ADA) 24 hour price chart. Source: Tradingview
(XRP) lost 8.4% and is now trading at $0.75525
Ripple 24 hour price chart (XRP). Source: Tradingview
(LUNA) lost 11% and is now trading at $75,895
Tira (LUNA) 24 hour price chart. Source: Tradingview
(DOT) lost 13.5% and is now trading at $26.0216
Polkadot (DOT) 24 hour price chart. Source: Tradingview
Another possible reason for the decline can be traced back to Bitcoin mining in Kazakhstan. In the wake of growing protests sparked by fuel prices in Kazakhstan, the government has cut internet access in the country. As it happened, over 18% of the world’s Bitcoin hash has disappeared.
on the flip side
- Despite the massive sell-off, many investors are still sticking to their predictions for 2022. With a lot to be suggested Bitcoin will reach $100k this year.
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