Ethereum, Cardano, and Dogecoin Lead Weekly Crypto Losses

[ad_1]

Crypto markets continue to slide after last week’s regulatory actions and yesterday’s Fed notes.

Over the past week, Cardano (ADA) has been the biggest loser among the ten biggest cryptocurrencies in the market, dropping 22%. Over the past day, the asset has fallen 7%, per CoinGecko.

Other big losers in the past week include Binances BNB token (down 10.3%), XRP (down 9.1%) and Dogecoin (down 9.5%).

Bitcoin (BTC) fell below $25,000 on Wednesday morning, trading 4% lower at $24,900. Over the week, the market’s largest digital asset is down 6%.

Data from CoinGecko shows that the total crypto cap has lost 4.2%, or around $40 billion in the last 24 hours. Ethereum (ETH) fell 6.4% and hit a three-month low of around $1,630. On the weekly timeline, ETH is currently down over 11.3%.

The broader crypto market is currently swimming in a sea of ​​red amid the uncertainty surrounding the pivot of the US Federal Reserve’s stance on raising interest rates.

Markets initially had a soft reaction to the Fed’s decision, trading sideways after the meeting; however, the decline accelerated Thursday morning.

Fed Rates and Crypto Markets

The US central bank kept the interest rate unchanged, leaving its benchmark interest rate unchanged at Wednesday’s Federal Open Market Committee (FOMC) meeting.

He also hinted that a few more interest rate hikes could come by the end of the year.

Rate hikes increase the cost of borrowing, which makes credit expensive, reducing the scope for wage and business growth. At the same time, higher interest rates on direct bank deposits and government bonds can make stocks and crypto less attractive to investors.

Today, the Dollar Index (DXY) rose 0.17% against other currencies reversed after the FOMC meeting confirmed that the price action is driven by the Fed’s decision.

The U.S. stock market also reacted negatively to the Fed’s uncertain rate break, with the S&P 500 index and tech-heavy Nasdaq 100 indices initially falling on the news.

However, equity indices recouped their intraday losses, with the S&P ending the day up 0.08% and the Nasdaq with gains of 0.86%.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

Stay up to date with crypto news, get daily updates in your inbox.

[ad_2]