Global markets were risk-averse, driving the crypto market value to $1.2 trillion amid significant sell-offs seen in most digital assets.
Bitcoin fell 4% on the day, falling through the $30K support level, compared to a 6% decrease in Ethereum during the same time period.
Ripple’s XRP is also in the red. It lost more than 6% of its value in the previous twenty-four hours, trading below $0.40.
What you should know
- Other cryptocurrencies were hammered worse, including Solana (down 9%), Avalanche (down 10%), and Cardano (down nearly 11% in the last day).
- While a variety of causes have contributed to this tremendous monetary decline, including the current Russia-Ukraine conflict, rising inflation statistics and worsening macroeconomic conditions have had a significant influence on the crypto employment market.
- The consumer price index in the United States, the most widely followed measure of inflation, climbed 8.6% year over year in May, beating expectations for a drop to 8.2% from 8.3% in April. BTC’s price dropped $500 earlier in the New York trading day as a result of this.
- Inflation is driving people to be more careful with their money, especially those with lower incomes who spend a larger portion of their budget on necessities like food and rent. Budget cuts may have a negative impact on the economy.
- In the early hours of Saturday, most alternative cryptos (altcoins), which are considered riskier, underperformed bitcoin. This indicates that crypto traders have a lesser appetite for risk.
- The bitcoin Fear & Greed Index has returned to “severe fear” zone, reversing a recent small gain. Over the last few months, a bearish mood has prevailed, causing some cryptocurrency investors to stay away.
However, other crypto experts are optimistic for the second half of 2022, citing high expectations for crypto and web3 adoption as the technology continues to evolve to meet existing financial sector concerns.