As inflation continues to surge with Fed preparing to raise interest rates several times this year, the crypto markets have felt the brunt of the macro-economic factors.
Bitcoin and Ethereum, the two crypto market leaders, have dropped hard, as over $170 billion has been wiped off of the global crypto market cap.
Bitcoin and Ethereum Drop Hard
Bitcoin, the world’s largest crypto, has dropped by more than 8% 0ver the last 24 hours. Bitcoin is currently trading at $38,856 as of this writing, after seeing lows at $38,560.
The 24 hour price chart for Bitcoin. Source: Tradingview
In the last month, Bitcoin’s value has fallen by 20%. As a result of the price drop, Bitcoin crashed to a new five-month low. Bitcoin’s market cap now stands at $736 billion as of this writing.
Ethereum has joined Bitcoin in feeling the weight of the market crash but especially so over the last 24 hours. As a result of the afroementioned previous 24 hours, Ethereum is down by more than 9%. As of this writing, Ether is trading at $2,864 after testing a 90-day low of $2,827.
The 24 hour price chart for Ethereum. Source: Tradingview
As a result of the market crash, 185,450 crypto investors have reportedly lost all their funds. In the last 24 hours, cryptocurrency traders have lost over $715 million.
The Bitcoin and Ethereum drop coincided with the reports of losses from Wall Street. In addition, Nasdaq reports a 5% drop this week, and the S&P 500 heads into its third straight week of losses.
On the Flipside
- Analysts have predicted that an eventual breakout is imminent in the wake of Bitcoin’s drop to $38k.
Why You Should Care
Having coincided with the decline of tech stocks, cryptocurrencies no longer exist in a bubble by themselves, as was earlier asserted.