$300 Billion Bitcoin And Crypto Price Crash After Stark Fed Warning—Ethereum, BNB, Solana, Cardano And XRP In Free Fall

- Advertisement -


The prices of bitcoin and cryptocurrency have fallen sharply, almost $300 billion worth of value has been wiped out from the combined crypto market in just two days.

- Advertisement -

After trading around $69,000 a few weeks ago, the price of bitcoin fell to around $51,000 per bitcoin – a drop of almost 30%. The latest moves have seen other major cryptocurrencies including Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP each lose around 10% in just 24 hours.

- Advertisement -

The sudden bitcoin and crypto sell-off, along with some serious stock market declines, comes after a warning by renowned investor Louis Navelier that the widely expected Federal Reserve could “dilute” the bitcoin and crypto bubble.

Sign up now for free cryptocodexA daily newspaper for the crypto-curious. Every workday, helping you understand the world of bitcoin and crypto

- Advertisement -

more from Businesshala‘Sounds Like BS’ – Elon Musk Slams Radical New Tech and Drives Up Dogecoin’s Price as Bitcoin and Ethereum Struggle

“The Fed is falling short, and this should improve risk assets, of which bitcoin is a part,” wrote Navelier in the comments to the first reported insider, “The higher the Fed tapers, the more volatility we should see in both stocks and bonds – and yes, bitcoin too.”

Bitcoin, and especially smaller cryptocurrencies, remain highly volatile compared to traditional markets, such as Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP often jumping double-digit percentages in just hours.

Navelier warned that the bitcoin price could drop below $10,000 per bitcoin, a drop of more than 80% from its all-time high of nearly $70,000 last month. Similar declines have been reported in the price of bitcoin in the past, although increasingly bitcoin and crypto investors are confident that the price of bitcoin will rise far higher in the coming years.

“I would take a decline below $46,000 (the 200-day moving average) to be a yellow flag and a fall below $28,500 to be an absolute massive double top, falling below $10,000. Which would coincide, coincidentally, with many of the many 80%+ declines in its history history,” wrote Navelier.

Navelier, who has been watching the market and picking stocks since the 90s, pointed to the huge ad spending by crypto companies as evidence of the frenzy in the bitcoin and crypto market. Trading platforms such as Crypto.com and FTX have raised eyebrows in recent months with multimillion-dollar campaigns and sponsorship deals.

cryptocodex—A free, daily newsletter for the crypto-curious

more from BusinesshalaNew German Chancellor Olaf Scholz Issues A Critical Bitcoin and Crypto Alert Ahead of Latest Price Hike

The sharp jump in the price of bitcoin – taking the cryptocurrency from a low of $4,000 in March 2020 to a high of nearly $69,000 last month – was at least partly driven by the US Federal Reserve and other central banks around the past year. Started largely because of stimulus measures. In response to the economic impact of the COVID-19 pandemic on the world and the lockdowns imposed to contain it.

The bitcoin rally has propelled the combined cryptocurrency market capitalization from nearly $500 billion this time last year to an all-time high of $3 trillion last month. Ethereum and its rivals Binance’s BNB, Solana, Cardano have outperformed Bitcoin over the past 12 months.

The Fed is now beginning to “weaken” its lost economic policy after a sharp rise in inflation and a nearly fully recovered labor market. While November’s employment figures came in as expected, the unemployment rate fell to 4.2 percent, from 4.6 percent in October—its lowest point in more than a year.

“Seldom has a headline number been so misleading,” Jay Mawji, managing director of global liquidity provider IX Prime, wrote in email comments. Sure, the 210,000 new jobs created in November was a huge omission. But market watchers Seeing this as a distraction rather than a disappointment. Dig deeper into the numbers and this jobs report reveals a strong labor market.”

“In a strange twist, low growth paired with potential supply chain issues from the new Omicron version could actually cause the Fed to raise rates more aggressively than before – all in an effort to fight rising inflation, Jay Pestricelli, CEO, Florida-based investment firm Zega Financial told Businesshala,

Last week, billionaire crypto investor Mike Novogratz warned Fed Chairman Jerome Powell that there could be a recession in bitcoin and crypto markets in 2022 as he works to stave off runaway inflation that jumped to 30-year highs. Is.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox