Crypto markets turned into a bloodbath on Monday due to global macroeconomic conditions. The market is struggling to maintain its $900 billion value. Investors are taking a cautious stance while awaiting the monetary policy results of the US Federal Reserve in an environment of rising inflation. Leading crypto bitcoin Ethereum dropped more than 8% on the day as it fell to a three-month low. Also, the strengthening dollar acted as a catalyst in affecting the mood of global markets, making cryptocurrencies also vulnerable.
While Bitcoin is currently trading around $19,084, it has dropped below $19,000 during the day. Ethereum is down 5.46% to trade at $1,352. Other majors such as BNB, XRP, Cardano, Solana, and Dogecoin cryptocurrency units lost value between 3-7%.
Koinfinans.com As we reported, in the last seven days, Bitcoin and Ethereum have lost approximately 14% and 22% respectively.
Among the winners in the crypto market are the following coins: Terra ClassicUSD, Terra Classic and Helium. On the list of the lowest performers; Kusama, EOS, Ethereum Classic, Celsius, Curve DAO Token.
WazirX Vice President Rajagopal Menon had this to say about the performance of the crypto market:
“The Fed has been aggressively raising interest rates since its March meeting of this year to contain inflation. […] US Dollar Index DXY had another rally this week and is currently approaching 110. This news has affected multiple investment markets such as stocks and cryptocurrencies.”
Rajagopal Menon then added:
“After the successful completion of the merge, ETH prices fell with the “sell the news” phenomenon; This was followed by a drop in the prices of other cryptos. […] Traders who bought ETH in anticipation of positive momentum sold their positions after the event. This caused a significant drop in prices.”
In addition, Edul Patel, CEO and co-founder of the global crypto investment platform Mudrex, made the following determination regarding the decline:
“The second largest cryptocurrency, Ethereum, fell 24% last week. The decline could be due to rising inflation, fears of a recession, and concern about the Federal Open Market Committee’s next rate hike meeting on Sept.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.