Crypto analysts say forthcoming monetary tightening could add to a global rout across major assets including equities and crypto.
Cryptocurrencies snapped an utterly weeklong run above the expected resistance levels strengthening the dollar sent to global equity and currency markets into decline.
Cardano’s ADA and Ether (ETH) witnessed a fall of approximately 9% over the past 48 hours. This gave the biggest decliners among major cryptocurrencies. Ether slipped slightly even after the Bellatrix upgrade. Bellatrix upgrade is the final upgrade coming before the Merge.
Bitcoin is trading at 19,218 USD at the time of writing, down by 5.5%. BNB Solana is down by 5%, XRP from Ripple and DOT from Polkadot have dropped by 4% and 7% respectively. Futures tracking major tokens racked up $327 million in liquidations, while the total cryptocurrency market capitalization slipped below 1 trillion USD for the first time in July.
The losses are not just limited to this, dogecoins also faced a steep drop of 6% on average. Outside the majors, Ethereum Classic’s ETC fell down to 16% after a double-digit rally this Tuesday, 6th Sept 2022. Terra Classic (LUNC) token saw a slight downfall of 29% after doubling over the past week.
Concerns about aggressive U.S Federal Reserve monetary tightening were heightened when the dollar climbed overnight, hitting a 24-year high against the Japanese yet. This also set a lifetime peak against the Indian rupee. The S&P 500 lost 0.4% and the NASDAQ 100 0.7% on 6th Sept, 2022.
Analysts at Thecoinrepublic warned of increased volatility in the coming days after the United States Consumer Price Index (CPI) data for August was released on Sept 13. The European Central Bank will generate its decision on Thursday.
Source: https://www.thecoinrepublic.com/2022/09/08/ether-ada-lead-steep-crypto-slide-amid-dollar-strength/