Bitcoin and major cryptocurrencies — including Ethereum, BNB, Luna, XRP, solana, cardano, avalanche, and dogecoin — have moved sharply lower, eliminating nearly $200 billion from the aggregate crypto market even as traders prepare for “big surprises.” ” this week.
Participate now for Forbes’ CryptoAsset & Blockchain Advisor And successfully navigate the latest crypto price crash
The latest bitcoin and cryptocurrency crash — which brought the market back below $2 trillion — has seen the price of bitcoin drop by 5% in the past 24 hours, adding to previous losses, while ethereum and its biggest rivals BNB, solana, cardano and avalanche topping the market lower, all down between 5% and 10%.
Ripple’s XRP and Terra’s luna are down 5% and 7%, respectively, while the meme-based dogecoin, which surged this week after billionaire and dogecoin supporter Elon Musk bought a large stake in Twitter and joined its board, crashed by 13%. .
Do you want to stay ahead of the market and understand the latest cryptocurrency news? Register now, for free Codex–Daily newsletter for cryptocurrency investors and the curious
The collapse of bitcoin and cryptocurrencies comes after the minutes of the Federal Reserve meeting revealed that officials agreed to start reducing the bank’s dwindling balance sheet by $95 billion per month, likely to begin in May. The plans hit stock markets, with technology shares leading the decline and causing the Nasdaq 100’s worst loss in two days in nearly a month.
Earlier this week, Fed Governor Lyle Brainard spooked markets when she said curbing inflation was “critical” and indicated that the Fed would raise interest rates faster and move more quickly to reduce its balance sheet than the market had expected.
“The prospect of continued monetary tightening by the Federal Reserve has alarmed stock market investors who have enjoyed the benefits of accommodative policies from the US central bank over the past decade,” Bitfinex’s trading team said in an email note. He added that they remain optimistic.
“While the broader bitcoin and cryptocurrency market is down today, the range-bound trading trend appears to remain in place as the on-chain data shows overall buying activity remains positive.”
Bitcoin pulled off exchanges at a record pace last month, according to data from cross-chain analytics firm Glassnode — something that is generally seen as a bullish sign because it indicates that buyers are looking to hold the coins for the long term rather than sell them.
Subscribe now to Codex—Free daily newsletter for cryptocurrency enthusiasts
This week, the biggest Bitcoin supporters gathered in Miami for the much-anticipated Bitcoin 2022 conference, a follow-up to last year’s event that saw El Salvador announce that it plans to adopt Bitcoin as a legal currency.
Meanwhile, the business intelligence software company – which turned to Bitcoin accumulating MicroStrategy this week – announced that it has bought another slice of bitcoin, spending $200 million. The company, led by Bitcoin bull Michael Saylor, now owns 129,218 bitcoins, valued at around $6 billion.
“The fact that such a large buyer failed to warm up the market makes us look to the near future with caution,” Alex Kuptsikevich, Senior Market Analyst at FxPro, wrote in email comments. Since the beginning of the month, it is clear that the bulls have not been able to develop an attack.”