Although markets are unpredictable, especially the crypto market is quite uncertain but this week has seen too many surprises.
No matter where you see, most probably you will encounter news of falling prices, shutting down of operations, crashing markets etc. Let’s begin with the crypto market itself that has crashed significantly resulting in dropping to the level it was in early 2021. Shrinking of almost every other cryptocurrency including top digital assets, resulted in steep decline in global crypto market capitalization which for now currently holds about $809 billion.
At the time of writing, top cryptocurrency Bitcoin (BTC) has been trading at around $18,322 after breaking its anticipated support at $20,000. The flagship cryptocurrency has lost almost 33% of its value in the past week. Following bitcoin (BTC), native cryptocurrency of the biggest smart contract blockchain network Ethereum (ETH) has also seen a massive decline in its price. Ethereum (ETH) is currently trading at around $959 after losing 34% of its value in the last seven days.
Come down to the list of top cryptocurrencies hierarchy-wise, more or less all have almost similar situations. However other digital assets that have lost similar amount of values include Monero (XMR) that lost about 37% of its value in a week, Cronos (CRO) which is also seen a decrease of 30% and Polygon (MATIC) which is about 33% down in last seven days. Overall all the top 30 cryptocurrencies,excluding stablecoins have seen losing of their values in double digits percentage in the last week.
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As far as the reason behind the market bloodshed is concerned, it is said to be the announcement of interest rate hikes by the US Federal Reserves that were even more than expected. Hike in interest rate was of about 0.75%, which is the biggest hike since 1994. Following the hike on interest rates, investors started dumping their holdings of riskier assets be it in stocks or crypto in order to prepare for possible upcoming recession.
On the same day, it was also reported by S&P Global Market Intelligence that stated that top big tech companies signified by their acronym FAANG stocks – including Facebook, Amazon, Apple, Netflix and Google have lost about $3.38 trillion of combined value this year.
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