Bitcoin (BTC) fell to $39,600, while many other cryptocurrencies followed the lead. The reason for the decline is attributed to macroeconomic factors such as the Russia-Ukraine tension. As Kriptokoin.com, we are reporting the developments…
Bitcoin broke $40 thousand, the market is going red
Bitcoin is trading in the red once again. The largest cryptocurrency has dropped below $40,000 today as global markets remain uneasy. At the time of writing, it is trading just over $40,000, down 4.63%.
The decline has hit Ethereum, Solana, and many other major altcoin projects severely. Three first-tier blockchains, Solana, Avalanche, and Terra, which are considered Ethereum competitors, lost 6.8%, 6.9% and 7.9% respectively. Metaverse coins Decentraland and The Sandbox, as well as two of DeFi’s best-known projects, Aave and Curve, are all red.
The drop comes after weeks of volatile price action
While the bitcoin and altcoin market shows occasional upward momentum, most cryptos are trading massively below ATH levels. Bitcoin is down 41.5% from its November 10 peak of $69,000, while Ethereum is down 42.8% at $4,800. The value of the global crypto market is currently under $1.8 trillion, down more than 36.6% from its $3 trillion peak.
Why is the cryptocurrency market falling?
In recent weeks, crypto has been affected by a number of major macroeconomic developments. Fears about the Omicron variant caused the market to tumble in December, before expected interest rate hikes from the Federal Reserve triggered a fresh decline. After the Fed’s previous meetings, the market is following a volatile course and the first hike is expected next month. Meanwhile, the Biden administration is expected to issue an Executive Order regulating cryptocurrencies next week, and the market mood has been affected by the ongoing tensions between Russia and Ukraine. Alongside the cryptocurrency, the S&P 500, Dow Jones and Nasdaq-100 are down 0.41%, 0.3% and 0.82% respectively today.
Only NFT resistant to Bitcoin drop
While Bitcoin and the crypto market as a whole have had a rough few weeks, some altcoins have challenged this trend. In recent weeks, the NFT market has shown no correlation to the overall market, with a few top NFTs rising even as major cryptos struggle to reach new highs. Last month, the base price of Bored Ape Yacht Club NFTs exceeded 100 ETH for the first time, while the prices of other popular avatar-based collectibles such as Azuki and mfers skyrocketed. Dedicated NFT collectors believe that 2022 will be a good year for NFTs, even if Ethereum is trading below the ATH level.
33967
