Market Concerns Cause Crypto Market Cap to Fall Below $950 Billion
Digital currency is in the freefall condition as the market trends with a bearish tone, especially past 24 hours which have shown unexpected signs. The overall crypto market cap goes below the mark of $950 billion. Every cryptocurrency is aimlessly riding the bear despite holders hoping to recover their capital investment.
The danger that the market cap could go below $900 billion is in the market’s mind, let alone individual traders. Bitcoin continues to lead against everyone’s wishes, with a fall of 3% and a trading value of $18798.64 at the time of drafting this article. The figures to follow also share the timeline of drafting this article.
Ethereum was the next Bitcoin assuming it would soon overtake the trading value. The fall could do that job in a reverse manner as Ethereum loses 8% to trade at $1344. Ethereum merge may not be the reason, but it surely has come at the wrong time. Traders – institutional or individuals – consider the advancement for raising their questions.
The ETH price has fallen by nearly 23% in the last 7 days. A glimpse of the same can be caught with the fall in the trading values of altcoins. ETC and ETHPoW have lost the most, with figures dropping by 12% and 50%, respectively. Ethereum Classic has lost less than ETHPoW, which was mindful of keeping Proof-of-Work alive on the network.
The objective being imperative, the loss in the trading value is still a major pinch for many in the trade. Cardano and Solana have taken a toll of 7%. Dogecoin and Polkadot complement them. While 7% may not be a perfect loss, the average is what matters when the entire market is far away from riding the bull.
Avalanche and MATIC have lost 10% as Shiba Inu follows suit. The situation is worrisome as traders ponder whether to wait for the sale or go deep for the future.
Selling the value could lighten up the portfolio; however, a rise would leave nothing but a potentially profitable investment behind with teary eyes.
Inflation is news no more. The Federal Reserve has declared its hawkish intentions to get the economy back on track. A rate hike of either 75 bps or 100 bps could be on its way, depending on how the meet scheduled for September 21, 2022, goes. No matter the direction it takes, a rate hike is inevitable, and so are its effects on the crypto market.
Experts believe that 75 bps will not cause a lot of harm. 100 bps, on the other hand, could put a dent in the digital trading sphere. The good news is that a rate hike of 75 bps is more likely to happen.
Adding more to the bullish trend in crypto are the World Bank warning of recession and Elon Musk’s views on deflation.