Cryptocurrency market: Why did Bitcoin, Ether, Dogecoin fall?

[ad_1]

The cryptocurrency market suffered a massive drop that put crypto token prices at multi-month lows.

The news: The cryptocurrency market has seen $130 billion wiped out of its value in the past 24 hours, according to CNBC.

Major coins – such as bitcoin and ether – have all suffered massive declines. Bitcoin and ether are more than 50% off all-time highs, according to CNN.

What’s going on: “Moves in cryptocurrency markets have been correlated with the selling off of higher-risk assets like tech stocks as investors brace for tighter monetary policy from the Reserve federal government and higher interest rates,” according to CNBC.

What they’re saying: “It’s possible that macroeconomic concerns, such as the Fed’s response to inflation rates, have facilitated risk reduction activity in general,” said Juthica Chou, head of trading at OTC options at Kraken, according to CNBC. “The recent price decline, coupled with high volatility, could lead to further selling as participants seek to reduce risk.”

The Big Picture: Investors are concerned about the state of cryptocurrency, especially as countries take significant steps to combat the crypto market.

Yes, but: Goldman Sachs once said that the price of bitcoin could reach over $100,000 by 2027, so it’s worth keeping an eye on, according to Barron’s.

[ad_2]