$100 Billion Wiped in Mere Minutes

Today, the cryptocurrency market witnessed a sudden crash, with the price of Bitcoin and Ethereum dropping. Other major currencies also saw significant declines. About $100 billion of the total value of all cryptocurrencies was erased in just a few minutes.

In the last 24 hours, bitcoin has seen a 5% drop. At the same time, the price of the second largest cryptocurrency, Ethereum, fell by a similar amount. In addition, Ethereum competitor Solana, Cardano, and Avalanche are down around 3%, while Ripple’s XRP and Terra’s luna lead the major cryptocurrency markets lower.

Related reading | Bitcoin collapses for the most part in almost a month – its golden days over?

Markets went into chaos on Wednesday after the Federal Reserve announced that it would raise interest rates. The sudden collapse came amid a technology company led by sell stock In response to this news, which has since spread to other sectors as investors flock to safer assets.

can enter the US economy Recession Because of rising interest rates and tightening monetary policy. Yesterday, Wall Street had a bad day. The Dow Jones Industrial Average lost more than 1,000 points, and the Nasdaq Technology Index fell 5%. Yesterday’s losses were preceded by significant gains in the previous session.

Bitcoin, which usually moves in tandem with the stock market, has been stuck in a tight range all year. It has struggled to return to its high prices from late 2021 amid widespread market selling.

Bitcoin after US stocks

Bitcoin isn’t the only thing struggling – the S&P 500 has also fallen to a new record for the year. Sam Kopelman, Luno’s director of bitcoin and cryptocurrency in the UK, warned that bitcoin could “slide back into its previously found support range of $36,000 to $37,000.”

Bitcoin price chart
Bitcoin trades below $36,000 with a 5% drop | Source: BTC/USD chart from Tradingview.com

Kopelman’s outlook on major coins such as Ethereum, Solana, Cardano, XRP, Avalanche and Luna is less than optimistic, but he does have some hope for Bitcoin.

Kopelman said;

Overall, 2022 has generally seen participants in the cryptocurrency market climb the risk ladder. Sell ​​their mini coins for top-tier coins like bitcoin.

The market’s response to the Fed’s largest rate hike since 2000 was delayed, as it first rose in Wednesday news and led market watchers to believe that a potential “downward event” had been “priced in.”

Related reading | Over 110,000 traders have recovered as the cryptocurrency market sees $120 billion shaved off

On May 3, veteran trader Peter Brandt warned Bitcoin price could drop to $28,000.

Completing the bears channel usually results in a drop equal to the channel width, or in this case a hard test of 32,000 or so – my guess is 28,000

This does not make me hate $BTC.

                  Featured image from Pixabay and the chart from Tradingview.com

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