Bitcoin has once again returned to $40,000 levels, marking the second drop from $43,450 on April 11th. According to CoinMarketCap data, Cardano (ADA) and Shiba Inu (SHIB) have lost 9.85% and 5.98% respectively in the last 24 hours. Most altcoins were also sliding down in the red zone at press time. So what’s the reason for this?
BTC is bleeding, including ETH and SHIB
BTC is down 10.76% on a weekly basis after failing to set foot above the $47,000 level in early April. Terra’s $176 million purchase of Bitcoin on Sunday also failed to support the price of the leading cryptocurrency.
BTC Daily Chart / Source: TradingView As previously reported by Cryptokoin.com, Luna Foundation Guard (LFG) is a Singapore-based non-profit focused on empowering Terra Blockchain. ), bought another $176 million worth of Bitcoin. LFG currently holds roughly $1.7 billion in the leading cryptocurrency. At the time of writing, Bitcoin was trading at $ 40,458, while ADA was changing hands at $ 0.9505 at the time of writing. SHIB was at $0.00002309.
Three possible reasons for market declines:
Change in investor sentiment
The Crypto Fear and Greed Index, which measures market sentiment, depicts widespread fear among investors as ‘fear’ at press time. measured. Currently, the index measures only 32/100 and indicates fear. This reflects a shift from last week’s ‘neutral’ levels.
Dollar index (DXY) strengthens
The dollar index (DXY), which measures the value of the dollar against different currencies, reached a two-year high of over 100 earlier today. The global reserve currency has gained 1.64% this month, according to data provided by TradingView. A stronger DXY could affect coin prices as BTC, SHIB and altcoins are paired with USD.
Concerns over Fed tightening
On Monday morning, 10-year Treasury yield exceeded 2.76%, while 5-year and 30-year rates reversed. Concerns that rising inflation and the Federal Reserve’s plans to aggressively tighten monetary policy could hamper economic development have recently raised Treasury rates.
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