The last twenty -four hours have been a massacre in the cryptocurrency markets. According to data from CoinMarketCap, global market capitalization has dropped 13.63% over the past twenty -four hours to $ 901 billion at 7:30 am IST today.
The current price of Bitcoin is $ 21,049, down 18.25%.
Ethereum also saw a big drop, falling 17.49% to $ 1,118. The BNB token fell 14.11%.
Ripple’s XRP is also falling. It’s down 10.9% in the past 24 hours.
After a 15.17% decline, Dogecoin fell to tenth place by market capitalization.
What triggered the bloodbath?
Sharat Chandra, VP of Research and Strategy at EarthID, told Business Today: “Crypto, as well as equity markets, are under intense stress. S&P has fallen 4%, hitting a new low in 2022. Market spreads are spreading “Market participants will be closely watching the Fed’s monetary policy meeting, which will begin today.The Federal Reserve’s options for controlling inflation are minimal, and restrictions of monetary policy seems inevitable.
Speaking about Bitcoin, the largest cryptocurrency by market cap, he said, “Bitcoin is likely to throw support at the $ 23,000 level. The correlation between Bitcoin and US equities remained high, indicating lagging price action and referring to selling pressure.
He added, “Glassnode data suggests that Bitcoin’s 200+ day downtrend, which began in November 2021, has also contributed to the decline in crypto exchange activity. Bitcoin’s sideway trends can be attributed to lackluster demand from long -term holders and selling pressure from short -term holders.
CoinDCX’s research team told Business Today, “What started as a sell-off in traditional markets eventually led to a massive contagion effect in many sectors of the economy, which crypto has also not survived.”
They added: “Raising expectations for a sharp rise in interest rates from the Federal Reserve to fight inflation has led to an evaporation of investor risk appetite across the board, with many indexes officially entering. in a bear market. ”
Charles Tan, chief marketing officer at Atato, an MPC’s licensed crypto custodian wallet, told Business Today: “Global financial markets are being hit by rising inflation and growing geopolitical uncertainty. The high rate of inflation in some of the world’s strongest economies has kept investors on their fingers as the crypto market has been dominated by sellers for some time now.
Tan further explained: “It is important to note that traditional financial markets are also facing a sharp decline due to growing inflationary concerns. The capitalization of the crypto market first crossed the $ 3 trillion mark in November last year. , mostly led by Bitcoin as it reached an all-time high of $ 69,000.
Speaking about the current market conditions, he said, “Current market conditions require caution and investors should carry out their investment strategy according to their risk appetite. Prices are a concern for the financial markets and relief will come when inflation returns to an acceptable level.
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