According to CNBC, the crypto market has lost $130 billion over the last 24 hours.
The selloff comes from investors dumping tech stocks and higher risk assets, especially as investors prepare for tighter monetary policy from the government, including higher interest rates.
Bitcoin has gotten a better price as of Monday (Jan. 24), after falling to its lowest point in months, CNBC reported. The coin had fallen to $32,982, and was up 5.6% by afternoon trading as broader equities changed course, hitting $37,183.
Ether, meanwhile, plunged to $2,176.41, the lowest number since July, according to numbers from Coin Metrics.
Cryptocurrencies have been reported to be moving in the same ways as stocks — and stocks have been falling since the beginning of the year, just now coming off their worst week since March 2020.
“It’s possible that macroeconomic concerns, such as the Fed’s response to inflation rates, have facilitated more de-risking activity in general,” said Juthica Chou, head of OTC options trading at Kraken, told CNBC. “The recent price drop, coupled with high volatility, could be leading to further selling as participants look to reduce risk.”
Furthermore, Bankrate.com reports that various cryptocurrencies have been lagging, including the aforementioned bitcoin which is still off its all-time high from November.
Bitcoin has been down 48% overall from that number, and while other cryptocurrencies improved on early-day losses, they have still fallen substantially since the beginning of the year.
Per the Bankrate.com report, ethereum was down 2.1%, solana was down 7.9%, dogecoin was down 2.1%, binance coin down 1.6% and terra down 1.5%.
Traders have been clinging to the upcoming Fed meeting convening this week to talk about the economy and interest rates, as cryptos have been doing more poorly since the Fed announced its intention to cut down on stimulus to the financial market. That, along with the rising interest rates, have both dealt blows to the crypto prices.
See also: Turkish Authorities Alarmed by Rise of Cryptocurrencies
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