The cryptocurrency market suffered a shock crash today, as Ethereum and Bitcoin prices fell. Another major coin also suffered a substantial drop. In just minutes, around $100 billion had been wiped off the total value of all cryptocurrency combined.
Bitcoin saw a decrease of 5% in the past 24 hours. It is also notable that the price for Ethereum, second most popular cryptocurrency, fell by an identical amount. In addition, Ethereum’s rivals Solana, Cardano, and Avalanche, have reduced by around 3%, while Ripple’s XRP and Terra’s luna lead the significant crypto markets lower.
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After the Federal Reserve declared that they were increasing their interest rates, Wednesday saw markets plunge into chaos. This sudden collapse was caused by a tech company. Stocks are being soldThis news prompted investors to seek safer investments and has now spread across the sector.
Because of interest rate increases and tightening of money policy, the U.S. might fall into recession. Wall Street suffered a terrible day yesterday. Over 1,000 points were lost by the Dow Jones Industrial Average, while tech-rich Nasdaq dropped 5%. Yesterday’s losses preceded big rallies in the previous session.
Bitcoin has remained stuck at a tight range throughout the year, even though it usually follows the stock market. Due to wider market selling, Bitcoin has had difficulty returning to its high prices in late 2021.
Bitcoin follows U.S. stocks
Bitcoin is not the only thing that is struggling–the S&P 500 has also fallen to a new record low for the year. Sam Kopelman, the U.K. manager for bitcoin and crypto exchange Luno, warned that bitcoin could “slip back into the previously found $36,000-$37,000 support range.”
Kopelman’s outlook on the major coins like Ethereum, Solana, Cardano, XRP, Avalanche, and Luna is less than optimistic, but he does have some hope for bitcoin.
Kopelman said;
In general, crypto market participants have seen a decline in risk over 2022. Their smaller coins can be traded for bitcoin and blue-chip currencies like Bitcoin.
The market has had a delayed response to the Federal Reserve’s biggest rate hike since 2000, first spiking on Wednesday’s news and leading market watchers to believe the potentially “bearish event” to have been “priced in.”
Over 110,000 Traders Rekt As Crypto Market Sees $120B Shaved Off| Over 110,000 Traders Rekt As Crypto Market Sees $120B Shaved Off
Peter Brandt is a retired trader who died on May 3. warnedBitcoin prices could drop as low as $28,000
The completion of a bear channel typically results in a decline equal to the width of the channel, or in this case a hard test of 32,000 or so — my guess is 28,000
It does not make me hate $BTC.
Featured image taken from Pixabay. Chart from Tradingview.com