Claim $500Altcoins Turn Deep Red, Why Is Crypto Crashing Today
The crypto market turned red overnight and is facing major bearish sentiments. Bitcoin fell close to 2% in the last 24 hours while Ethereum fell by over 3%. BTC is currently trading at $19,100 while ETH is at $1,281. However, it is the rest of the crypto altcoins market which is facing a major crash.
Ripple’s XRP broke its strong rally and plummeted close to 7% in the last 24 hours. On the other hand, Cardano and Solana both continued their slide to the bottom. Cardano fell by 6% while Solana fell close to 4%. Despite strong fundamentals, Chainlink is also tanking due to unfavorable macroeconomic conditions. It is currently trading at $7.22 after falling another 4% in the last 24 hours.
Ethereum Classic continues to be one of the poorest performers in the crypto market. ETC was expected to be a major beneficiary of the Ethereum merge. However, ETC continues to disappoint its investors. It fell another 11% in the last 24 hours and is trading at $24.
Why Is Crypto Crashing Today
The crypto market is struggling due to the hawkish macroeconomic conditions created by the Federal Reserve. The crypto market is currently watchful of the Consumer Price Index which will be released on Thursday. The CPI is a strong indicator of inflation levels in the country. Last month, the released CPI was worse than the expected forecast. As a result, the crypto market faced a major bloodbath.
Similarly, the Producer Price Index will also be released this month. Key fed officials continue to reaffirm their hawkish stance against inflation. The CME Fed Watch tool currently shows the likelihood of a 75 bps interest rate hike. If the released CPI and PPI are worse-than-expected, the market can price in a mega hike of 100 bps. Last month, this phenomenon led to further sell-off in the crypto market.
Will Recession Be A Saving Grace
Fed officials continue to have a hawkish stance. However, concerns regarding the global financial instability are rising. The International Monetary Fund will release its Global Financial Stability report on Tuesday. Concerns about an impending recession may result in a pivot from the Fed.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Brian Armstrong Praises Indian Police for Arresting Ex-Agent in $400M Coinbase Hack
- JPMorgan Flags Risky Stablecoin Activity, Freezes Account of Two Firms
- Another U.S. Government Shutdown Looming JAN 31? Congress Left Town With No Deal
- Are XRP and Midnight Ahead in Tokenization? Cardano’s Hoskinson Sparks Debate Amid Canton Push
- Breaking: U.S.-China Tensions Heat Up as China Imposes New Sanctions; Bitcoin Falls
- Cardano Price Eyes a 40% Surge as Key DeFi Metrics Soar After Midnight Token Launch
- FUNToken Price Surges After MEXC Lists $FUN/USDC Pair
- Bitcoin Price on Edge as $24B Options Expire on Boxing Day — Is $80K About to Crack?
- Crypto Market Rebounds: Are Bulls Positioning for a Santa Rally?
- XRP, Bitcoin, Ethereum Price Predictions Ahead of Jan 2026 CLARITY Act and US Crypto Reserve Plans
- Pi Network Analysis: Pi Coin Price Surges on Christmas Eve, Can It Hit Year-End Highs?
