A larger stock sale in the United States last week drove the crypto marketplace into a panic and caused the cryptocurrencies to plunge by nearly 11%. At 7:15 a.m. ET, Bitcoin had dropped 5 percent to $32,861.95. The dip came after blue-chip Dow Jones Industrials dropped over 1,010 points and the Nasdaq dropped 6.1% on Thursday, the biggest single declines since 2020.
Bitcoin fell to $32,655 intraday, its lowest number as of June 2021. This year, the cryptocurrency has already been fluctuating in a confined range as it strives to recapture its end of 2021 peaks. In response to inflationary concerns, the Federal Reserve hiked its interest rates by 50% on Tuesday. The financial sector surged after Fed Chairman Jerome Powell said that a 75-basis-point rise was not being discussed. Traders, though, had negated the Fed rally’s profits by Thursday.
Market Cap of Cryptocurrencies
According to CoinGecko.com, the worldwide market worth for cryptocurrencies was $1.69 trillion on Sunday, and cryptocurrencies volume of trading was $119 billion in the previous day.