Traders Warn Of Severe Losses Ahead As SOL And DOGE Lead The Charge In Major Cryptos

According to Bloomberg, inflation has risen to 8.3 percent in the last year, prompting markets to price in more rate hikes of more than 175 basis points by September, meaning two half-point and one 75 basis-point hikes.

According to research, the top hundred cryptocurrencies by market value had average losses of 15%. Despite the decline, crypto futures only saw $1 billion in liquidations, which is a small amount compared to past high liquidations when prices were not as volatile.

On Monday, as a result of this study, global assets tanked, with Asian stock indices closing the day 3.39 percent lower. Since Monday’s start, Europe’s Stoxx 600 has dropped 2.2 percent, while Germany’s DAX has dropped 2.18 percent.

Crypto markets have dropped 12% in the last 24 hours as a result of bad macroeconomic mood and internal systemic risk, reaching market capitalization levels last seen in January 2021. Bitcoin (BTC) fell 13% to under $25,000, its lowest level in 18 months, while ether (ETH) fell 18%. In the last 24 hours, Dogecoin (DOGE) has dropped 21%, while Solana’s SOL, Polka Dots DOT, and XRP have all dropped at least 16 percent.

Rate Hikes Of More Than 175 Basis Points

According to research, the top hundred cryptocurrencies by market value had average losses of 15%. Despite the decline, crypto futures only saw $1 billion in liquidations, which is a small amount compared to past high liquidations when prices were not as volatile. This indicates that spot selling was the driving force behind the drop. Cryptocurrency weakness coincided with last week’s release of disappointing U.S. Consumer Price Index data for May.

According to Bloomberg, inflation has risen to 8.3 percent in the last year, prompting markets to price in more rate hikes of more than 175 basis points by September, meaning two half-point and one 75 basis-point hikes.

On Monday, as a result of this study, global assets tanked, with Asian stock indices closing the day 3.39 percent lower. Since Monday’s start, Europe’s Stoxx 600 has dropped 2.2 percent, while Germany’s DAX has dropped 2.18 percent. Futures in the United States started the day lower. Since Monday’s opening, the Nasdaq 100 has dropped 2.95 percent, while the S& P500 has dropped 2.33 percent.

Economic Growth Is Certainly Decreasing

Cryptocurrency prices are expected to continue to tumble until market circumstances improve, according to traders.

We could be in for considerably bigger losses in the future. In an email to CoinDesk, Manuel Ortiz-Olave, co-founder of equity tokens business Brickken, said, Economic growth is certainly decreasing, and projections already imply the US could witness a recession in the next year. Higher inflation will continue to force higher interest rates, which are equally detrimental to economic growth.

Sales have already slowed at some of the world’s most important companies, including Apple [AAPL], Microsoft [MSFT], and Nike [NKE], while Tesla [TSLA] has suggested that layoffs are on the way. These are definitely negative headlines, which, when paired with increasing food and fuel prices, cause people to be cautious with their savings, Ortiz-Olave said, stressing that a slowdown in consumer spending would result in a revenue loss for major corporations.

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