- BTC fell by roughly 5% today, while ETH and the remainder of the crypto market saw losses of upward of 6%.
- Those losses coincide with similar but more moderate losses in the stock market, as the Nasdaq fell by 3.3% today.
- The market slump is likely related to inflationary concerns around the U.S. Federal Reserve’s plans to raise interest rates.
Bitcoin prices fell by roughly 5% today alongside news that the U.S. Federal Reserve will raise interest rates in the coming months.
Bitcoin and Ethereum Are Down
Bitcoin (BTC) prices fell by 5.3% over the past 24 hours, as the asset’s value dropped from $45,800 to $43,500. That amount is the lowest price that the cryptocurrency has seen since September 2021.
Ethereum (ETH)’s value fell by 6.7% over the same period, meanwhile, as prices dropped from $3,780 to $3,545.
Leading cryptocurrencies and altcoins such as Binance Coin (BNB), Cardano (ADA), Ripple (XRP), Avalanche (AVAX), Dogecoin (DOGE), and Shiba Inu (SHIB) all saw similar losses of 5.7% to 6.9%.
Polkadot (DOT), Terra (LUNA), and Solana (SOL) were hit somewhat harder, with losses of 7.3%, 7.9%, and 8.4% respectively.
Losses extended to the rest of the crypto market, which is down 5.9% today, resulting in a total market cap of $2.2 trillion.
Federal Reserve Interest Raise May Be at Play
Reasons for the market slump are uncertain, as there were few if any significant announcements in the crypto industry today.
However, Bitcoin and the stock market are known to correlate often, with a 100-day correlation of 0.33 reported late last year. As such, losses today may be related to similar but milder losses in the stock market. The Nasdaq Composite lost 3.3% over the past 24 hours, while the S&P 500 saw losses of 1.9% in the same period.
Those losses in the stock market have been attributed to the U.S. Federal Reserve confirming that it will begin to raise interest rates in the coming months, thereby spurring concerns over inflation.
It is believed that this rate hike could take place sooner than expected and as early as March. Such a short time frame may have motivated widespread sell-offs among investors today.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
Chainlink Eyes Possible Bull Run
Chainlink appears to be trading at a crucial support level that has previously marked the beginning of a bull run. If history repeats itself, LINK could rise towards new record…
Web3 – What it is, What it Means, and How We’ll Transition
We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…
Fantom, NEAR Ride Layer 1 Boom Into 2022
Fantom and NEAR are two of the latest Layer 1 coins to rally. Crypto Layer 1 Boom Continues Layer 1 hype isn’t dead yet. Several smart contract blockchains have seen…
Cosmos and Osmosis Surge While Rest of Market Flounders
The tokens for both Cosmos and its most prominent decentralized exchange, Osmosis, are up today while much of the rest of the cryptocurrency market is either flat or down. Positive…