As crypto markets bleed, this is what experts have to say

The last twenty-four hours have been a bloodbath on the cryptocurrency markets. As per information from CoinMarketCap, the worldwide market capitalization has decreased by 13.63 per cent over the previous twenty-four hours to $901 billion as of seven:30 AM IST at the moment.

The present value of Bitcoin is $21,049, a lower of 18.25 per cent.

Ethereum has additionally skilled an enormous decline, plunging 17.49 per cent to $1,118. The BNB token decreased by 14.11 per cent.

XRP of Ripple can also be declining. It has decreased by 10.9 per cent over the previous 24 hours.

After a 15.17 per cent decline, Dogecoin has slid to tenth place by way of market capitalisation.

What triggered the massacre?

Sharat Chandra, Vice President, Analysis and Technique at EarthID informed Enterprise At the moment, “Crypto, as well as equity markets, have come under severe stress. The S&P has fallen by 4 per cent, touching another low in 2022. Contagion in markets is spreading. Market participants will closely watch Fed’s monetary policy meeting, which starts today. Federal Reserve’s options for reining inflation are minimal, and monetary policy tightening seems unavoidable.”

Speaking about Bitcoin, the largest cryptocurrency by market capitalization, he said, “Bitcoin is likely to forge support at the $23K level. The correlation between Bitcoin and US equities has remained high, denoting a lagging price action and referencing selling pressure.”

He further added, “Glassnode data suggests Bitcoin’s 200-day plus downtrend, which began in November 2021, has also contributed to dwindling crypto exchange activity. Bitcoin’s sideways trends can be attributed to lacklustre demand from long-term holders and selling pressure from short-term holders.”

The CoinDCX analysis staff informed Enterprise At the moment, “What initially started as a sell-off in conventional markets ultimately led to an enormous contagion impact throughout a number of sectors of the economic system, with crypto not spared both.”

They added, “Growing expectations of a sharper Federal Reserve interest rate hike to fight inflation led to an evaporation of investors’ risk appetites across the board, with numerous indices officially entering a bear market.”

Charles Tan, Chief Advertising and marketing Officer, Atato, a licensed MPC crypto custodian pockets, informed Enterprise At the moment, “The global financial markets are battered by rising inflation and growing geopolitical uncertainty. The high inflation in rate in some of the most powerful economies of the world has kept the investors on their toes as the crypto market has been dominated by sellers for quite some time now.”

Tan defined additional, “It is important to note that traditional financial markets are facing a steep downturn too due to the growing inflationary concerns. The crypto market cap touched crossed the $3 trillion mark for the first time in November last year which was mainly led by Bitcoin as it touched an all-time high of $69,000.”

Talking of present market circumstances, he mentioned, “The current market conditions call for caution and investors should execute their investment strategy depending on their risk appetite. The rising pricing is a matter of concern for the financial markets and respite will come with inflation cooling down to an acceptable level.”