Bitcoin news

Bitcoin and Ethereum lead the downside in the crypto market

The market cryptocurrency closed the week with a sudden collapse, With prices of Bitcoin ed Ethereum in sharp decline. Other major cryptocurrencies also saw a significant drop, so much so that approximately $ 100 billion was written off from the combined value of all cryptocurrencies in minutes.

In the last 24 hours, Bitcoin experienced a 5% drop. At the same time, the price of the second largest cryptocurrency, Ethereum, has fallen by a similar amount. Furthermore, Ethereum's rivals, Solana, Cardano and Avalanche, decreased by about 3%, while XRP di Ripple and Luna di Terra did not fare particularly well. But why?

Cryptocurrency markets went into chaos after the Federal Reserve announced it would raise its benchmark interest rates. The sudden crash came in the midst of a tech-led equity sell-off in response to this news, which then spilled into other sectors as investors flee to safer assets.

The US economy could go into recession due to increases in interest rates and tightening of monetary policy. Also for this reason, Wall Street had a bad day yesterday, with the Dow Jones Industrial Average losing more than 1.000 points, and the Nasdaq, which weighs in the technology sector, fell by 5%. Yesterday's losses preceded major rallies in the previous session.

Bitcoin, which usually moves with the stock market, has been stuck in a tight range all year. It has struggled to return to its high prices since late 2021 amid a broader market sell-off.

However, Bitcoin is certainly not the only asset in trouble: the S&P 500 also dropped to a new all-time low for the year. Sam Kopelman, the UK manager for bitcoin and cryptocurrency exchange Luno, warned that bitcoin could "slip back into the previously found support range of $ 36.000- $ 37.000 ″.

Kopelman's outlook on major coins like Ethereum, Solana, Cardano, XRP, Avalanche, and Luna are less than optimistic, but he has some hope for bitcoin.

The market had a delayed response to the Federal Reserve's largest rate hike since 2000, before hitting the news Wednesday and leading market watchers to believe the potentially "bearish" event was "priced."

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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