The crypto market has crashed in the past 24 hours. With the surprising decline, the value of the crypto market has dropped to $ 941 billion in the last 24 hours. It marked a 7.3 percent decline. Bitcoin has fallen to $ 18,481 with 8 percent loss in the last 24 hours. Ethereum, on the other hand, dropped 11.2% to $1,292. Here are the declines that affect many cryptos and their possible reasons…
Sharp fall in the market: Here is the latest situation in the price of Bitcoin, ETH, SHIB
Bitcoin has lost close to 8 percent in the last 24 hours and lost the $19,000 support. On the other hand, altcoins faced the biggest hit of the bear market. As we reported as Kriptokoin.com, Ethereum, which made the merge on September 15, has lost 11 percent in the last 24 hours. The decline of the leading altcoin in the last 7 days is 26%.
Cardano, Solana, Dogecoin, and Polkadot fell over 10 percent. MATIC, Shiba Inu and Avalanche fell close to 20 percent, facing an absolute bloodbath. The biggest losers in the last 24 hours were Ethereum Classic and ETHPoW (ETHW). ETC was down 18 percent. ETHW, on the other hand, fell close to 50 percent. As it is known, ETHPoW is a hard fork that aims to keep proof-of-work alive on Ethereum after the merge.
Why is the cryptocurrency market crashing today?
The crypto decline in the market appears to be a direct result of the current macroeconomic conditions. According to experts, the Ethereum merge could not have come at a worse time. Due to rising inflation, the US Federal Reserve (FED) took a very hawkish stance. The next Federal Open Market Committee (FOMC) will meet on September 21. In this meeting, they will talk about interest rate hikes and rates. The Fed will likely raise 75 basis points, according to the CME Fed Monitoring Tool.
However, some experts believe the market is priced in a 100 basis point gain. A 75 basis point hike is likely already fully priced in. Therefore, it is thought that it will not have a big impact on the crypto market. The Fed was keen to lower inflation rates in the country, but the seriousness of raising interest rates was not well received. There were also talks that a recession could happen sooner or later.
US Fed officials have repeatedly reaffirmed their commitments to raise interest rates in recent months until inflation is under control. However, the World Bank warned last week that the Fed’s effort to tackle inflation in this way risks putting the world economy in a recession by 2023.
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