Bitcoin, Altcoins Plummet, Why Is Crypto Down Today

The crypto market is down today after a small surprise rally yesterday. The market is crashing as the sentiment around risk assets turns negative. 

Bitcoin prices have fallen by 7% in the last 24 hours. It wipes away all the gains of yesterday’s rally as BTC falls below the $19K mark again. It is currently trading at $18,726. 

Ethereum lost more than 7% and is currently trading at $1285. Ethereum continues its downtrend after the merge. The altcoin market continues to struggle with unfavorable macroeconomic conditions. 

BNB fell close to 5% while XRP broke its upward trend and fell by more than 10%. Cardano (-6.45%), Solana (-7.20%), DOGE (-5%), and Polkadot (-7%) were the other biggest losers in the market. 

Why Is Crypto Down?

The crypto market struggles as the central banks remain hawkish to curb soaring inflation levels in the US. Neel Kashkari of the Minnesota Federal Reserve believes that the interest rates may not be high enough. Susan Collins of the Boston Fed warns that unemployment will rise as the Fed continues its hawkish stance. 

The Fed’s hawkish stance is concerning the market participants as recession fears are mounting. Collins hopes that the slowdown will be modest but also concedes that a significant economic event can lead to a recession. 

The dollar continues to show incredible strength which is sinking the risk assets market. The US dollar climbed another 0.39% which plummeted other currencies across the globe. The climbing dollar will help solve the soaring inflation levels in the US. However, experts worry if it can also lead to global destabilization. 

Key Events To Watch

Several key Fed officials will continue to speak at various events. They include San Francisco’s Mary Daly, Atlanta’s Raphael Bostic and Charles Evans of Chicago. 

Germany will release their Consumer Price Index which can lead to global volatility and affect the crypto market. The crypto market will hope that stock market can rally and provide some relief.