Share this article
Bearish sentiment prevails in the cryptocurrency space.
Crypto Market Hit By Another Downturn
The cryptocurrency market is in volatile mode.
Bitcoin took another big hit this weekend as it tumbled from $42,000 to around $40,600. Ethereum also plummeted to just above $3,000. The $40,000 and $3,000 levels are notable as they act as key psychological milestones for both assets. The two leading crypto assets have since recovered to around $41,800 and $3,130, but most lower cap coins haven’t fared so well.
Solana, Avalanche, and Polygon are all trading in the red today after shaving off more than 20% of their market value in the last week. The market selloff has also hit gaming tokens like Axie Infinity, a variety of DeFi tokens, and the meme coins Dogecoin and Shiba Inu.
While most assets have suffered thanks to the bearish sentiment, outliers that have risen over the past week include Chainlink, Harmony, and the Cosmos-based decentralized exchange Osmosis.
The market took a nosedive Wednesday after the Federal Reserve announced its plans to hike interest rates. This update was notable as it indicated that the cost of borrowing money would likely become more expensive as the Fed attempts to get a hold over inflation. In such environments, risk-on assets like stocks tend to suffer. As this week proved, crypto also tends to take a blow under such conditions.
While this week has been rocky for most major crypto assets, it follows a prolonged slump across the market. Bitcoin is now down 39.2% from its $69,000 high recorded in early November, while Ethereum is 36.1% short of its peak. Many lower cap coins are down 50% or more.
After this weekend’s shaky price action, the popular Crypto Fear & Greed Index has registered a score of 23, indicating that the market is in “extreme fear.”
Disclosure: At the time of writing, the author of this feature owned ETH, ATOM, MATIC, and several other cryptocurrencies.
Share this article
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.
See full terms and conditions.
Bitcoin Falls 5% as Fed Confirms Interest Rate Hikes
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…
Cosmos, Harmony, DeFi 2.0 Tokens Defy Market Slump
Cosmos, Harmony, and several so-called DeFi 2.0 projects have put in double-digit gains over the past 24 hours despite a decline across the wider market. Cosmos and Harmony Rally Cosmos…
Bitcoin Struggling Against Bearish Momentum
Bitcoin is struggling to find a stable support floor as bears appear to have taken over. Historical price action suggests that BTC must hold above $37,300 to avoid capitulation. Bitcoin…
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…