{"id":1450,"date":"2023-02-26T05:03:45","date_gmt":"2023-02-26T10:03:45","guid":{"rendered":"https:\/\/embarrdowns.com\/crypto-market-cap-drops-40-billion-as-volatility-heightens\/"},"modified":"2023-02-26T05:03:45","modified_gmt":"2023-02-26T10:03:45","slug":"crypto-market-cap-drops-40-billion-as-volatility-heightens","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/crypto-market-cap-drops-40-billion-as-volatility-heightens\/","title":{"rendered":"Crypto Market Cap Drops $40 Billion as Volatility Heightens"},"content":{"rendered":"

Cryptocurrencies have been facing heightened volatility and unpredictable market swings this week, leading to a decline in price.[0]<\/a><\/sup> Bitcoin (BTC-USD) is currently trading at $23,082, down 1.45% over the last seven trading sessions.[1]<\/a><\/sup> Meanwhile, Ethereum (ETH-USD) has seen its value decline by 2.35% to $23,849 in the 24 hours to 4:30 p.m. in Hong Kong.<\/p>\n

The recent decline in cryptocurrency prices follows the release of the U.S. Consumer Price Index (CPI) data, which revealed higher-than-expected inflation. This has led to concerns that the Federal Reserve will need to raise interest rates faster than previously signaled, prompting investors to take a more risk-averse approach.[2]<\/a><\/sup> Additionally, heightened U.S. regulatory enforcement activity focused on centralized exchanges is also causing Bitcoin and other tokens to retreat.<\/p>\n

Goldman Sachs analysts are of the opinion that the Federal Reserve will implement more than 0.75% in rate hikes in the foreseeable future.[3]<\/a><\/sup> The Federal Reserve plans to increase interest rates by 0.25% three more times before March, after which they will pause and evaluate the circumstances.[3]<\/a><\/sup><\/p>\n

On-chain transaction volume for Bitcoin has also dropped from a high of 42 billion BTC to 29 billion.[4]<\/a><\/sup> This sudden decline further confirms the bearish divergence noted from a technical standpoint on the three-day timeframe.[4]<\/a><\/sup><\/p>\n

It is not unexpected, then, that the total market capitalization of all cryptocurrencies has fallen to $1.060 trillion following a one-day loss of $40 billion.[5]<\/a><\/sup> Bitcoin\u2019s share of the market dominance rate is 42.1%.[6]<\/a><\/sup><\/p>\n

Crypto traders are awaiting the release of January\u2019s personal-consumption expenditures (PCE) price index, which is the Federal Reserve\u2019s preferred measure of inflation.[7]<\/a><\/sup> This data may provide more clarity on the headroom available to the Fed to raise rates higher and longer.[8]<\/a><\/sup><\/p>\n

Furthermore, the pseudonymous contributor pointed out that the 30-day moving average of active addresses increased during both the reversal of the bull market in 2019 and during the recovery from the impact of COVID-19 in 2020.[9]<\/a><\/sup> No pattern has been detected in 2023 thus far.[9]<\/a><\/sup><\/p>\n

The overall cryptocurrency market capitalization decreased by 1.95% to US$1.09 trillion in the 24 hours to 4:30 p.m.[10]<\/a><\/sup><\/p>\n

0. <\/span>“Bitcoin Falls as Nasdaq 100 Scores Wild Swings amid Fed Jitters, US PCE Data Ahead” DailyFX, 23 Feb. 2023, https:\/\/www.dailyfx.com\/news\/bitcoin-btc-usd-falls-as-nasdaq-100-scores-wild-swings-amid-fed-jitters-us-pce-data-ahead-20230223.html<\/a><\/a><\/p>\n

1. <\/span>“Trader Says Bitcoin (BTC) Set To Rally in the Medium Term \u2013 But There\u2019s a Catch” The Daily Hodl, 25 Feb. 2023, https:\/\/dailyhodl.com\/2023\/02\/25\/trader-says-bitcoin-btc-set-to-rally-in-the-medium-term-but-theres-a-catch\/<\/a><\/a><\/p>\n

2. <\/span>“This Week in Crypto: Interest Rate Hike Likelihood Saps Strength from Tokens” TipRanks, 23 Feb. 2023, https:\/\/www.tipranks.com\/news\/article\/this-week-in-crypto-interest-rate-hike-likelihood-saps-strength-from-tokens<\/a><\/a><\/p>\n

3. <\/span>“BTC\/USD Forex Signal: Bitcoin Waits for the FOMC Minutes” DailyForex.com, 22 Feb. 2023, https:\/\/www.dailyforex.com\/forex-technical-analysis\/2023\/02\/btcusd-forex-signal\/191805<\/a><\/a><\/p>\n

4. <\/span>“Bitcoin Weekly Forecast: Reversal signs push BTC holders to tread cautiously” FXStreet, 24 Feb. 2023, https:\/\/www.fxstreet.com\/cryptocurrencies\/news\/bitcoin-weekly-forecast-reversal-signs-push-btc-holders-to-tread-cautiously-202302240352<\/a><\/a><\/p>\n

5. <\/span>“Bitcoin on track for 6% weekly loss as investors avoid risky bets after hot inflation data” Seeking Alpha, 25 Feb. 2023, https:\/\/seekingalpha.com\/news\/3940914-bitcoin-on-track-for-6-weekly-loss-as-investors-avoid-risky-bets-after-hot-inflation-data<\/a><\/a><\/p>\n

6. <\/span>“Bitcoin slides to support at $23k as rising inflation sparks a run for the exits” Kitco NEWS, 24 Feb. 2023, https:\/\/www.kitco.com\/news\/2023-02-24\/Bitcoin-slides-to-support-at-23k-as-rising-inflation-sparks-a-run-for-the-exits.html<\/a><\/a><\/p>\n

7. <\/span>“Bitcoin Slips Below $24,000 as Crypto Traders Eye PCE Inflation Data” Barron’s, 24 Feb. 2023, https:\/\/www.barrons.com\/articles\/bitcoin-ethereum-price-crypto-markets-today-dca33115<\/a><\/a><\/p>\n

8. <\/span>“Cryptos Firm Amidst FOMC Minutes, Economic Data” RTTNews, 23 Feb. 2023, https:\/\/www.rttnews.com\/3346194\/cryptos-firm-amidst-fomc-minutes-economic-data.aspx<\/a><\/a><\/p>\n

9. <\/span>“Bitcoin Reclaims $24K on FOMC Minutes Release, Stacks (STX) and Tezos (XTZ) Up Double Digits” Securities.io, 23 Feb. 2023, https:\/\/www.securities.io\/bitcoin-reclaims-24k-on-fomc-minutes-release-stacks-stx-and-tezos-xtz-up-double-digits\/<\/a><\/a><\/p>\n

10. <\/span>“Crypto Prices Today: Cardano (ADA), Polygon (MATIC), XRP (XRP), Solana (SOL)” CoinGape, 25 Feb. 2023, https:\/\/coingape.com\/crypto-prices-today-cardano-ada-polygon-matic-xrp-xrp-solana-sol\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrencies have been facing heightened volatility and unpredictable market swings this week, leading to a decline in price.[0]<\/a><\/sup> Bitcoin (BTC-USD) is currently trading at $23,082, down 1.45% over the last seven trading sessions.[1]<\/a><\/sup> Meanwhile, Ethereum (ETH-USD) has seen its value decline by 2.35% to $23,849 in the 24 hours to 4:30 p.m. in Hong Kong.<\/p>\n

The recent decline in cryptocurrency prices follows the release of the U.S. Consumer Price Index (CPI) data, which revealed higher-than-expected inflation. This has led to concerns that the Federal Reserve will need to raise interest rates faster than previously signaled, prompting investors to take a more risk-averse approach.[2]<\/a><\/sup> Additionally, heightened U.S. regulatory enforcement activity focused on centralized exchanges is also causing Bitcoin and other tokens to retreat.<\/p>\n

Goldman Sachs analysts are of the opinion that the Federal Reserve will implement more than 0.75% in rate hikes in the foreseeable future.[3]<\/a><\/sup> The Federal Reserve plans to increase interest rates by 0.25% three more times before March, after which they will pause and evaluate the circumstances.[3]<\/a><\/sup><\/p>\n

On-chain transaction volume for Bitcoin has also dropped from a high of 42 billion BTC to 29 billion.[4]<\/a><\/sup> This sudden decline further confirms the bearish divergence noted from a technical standpoint on the three-day timeframe.[4]<\/a><\/sup><\/p>\n

It is not unexpected, then, that the total market capitalization of all cryptocurrencies has fallen to $1.060 trillion following a one-day loss of $40 billion.[5]<\/a><\/sup> Bitcoin\u2019s share of the market dominance rate is 42.1%.[6]<\/a><\/sup><\/p>\n

Crypto traders are awaiting the release of January\u2019s personal-consumption expenditures (PCE) price index, which is the Federal Reserve\u2019s preferred measure of inflation.[7]<\/a><\/sup> This data may provide more clarity on the headroom available to the Fed to raise rates higher and longer.[8]<\/a><\/sup><\/p>\n

Furthermore, the pseudonymous contributor pointed out that the 30-day moving average of active addresses increased during both the reversal of the bull market in 2019 and during the recovery from the impact of COVID-19 in 2020.[9]<\/a><\/sup> No pattern has been detected in 2023 thus far.[9]<\/a><\/sup><\/p>\n

The overall cryptocurrency market capitalization decreased by 1.95% to US$1.09 trillion in the 24 hours to 4:30 p.m.[10]<\/a><\/sup><\/p>\n

0. <\/span>“Bitcoin Falls as Nasdaq 100 Scores Wild Swings amid Fed Jitters, US PCE Data Ahead” DailyFX, 23 Feb. 2023, https:\/\/www.dailyfx.com\/news\/bitcoin-btc-usd-falls-as-nasdaq-100-scores-wild-swings-amid-fed-jitters-us-pce-data-ahead-20230223.html<\/a><\/a><\/p>\n

1. <\/span>“Trader Says Bitcoin (BTC) Set To Rally in the Medium Term \u2013 But There\u2019s a Catch” The Daily Hodl, 25 Feb. 2023, https:\/\/dailyhodl.com\/2023\/02\/25\/trader-says-bitcoin-btc-set-to-rally-in-the-medium-term-but-theres-a-catch\/<\/a><\/a><\/p>\n

2. <\/span>“This Week in Crypto: Interest Rate Hike Likelihood Saps Strength from Tokens” TipRanks, 23 Feb. 2023, https:\/\/www.tipranks.com\/news\/article\/this-week-in-crypto-interest-rate-hike-likelihood-saps-strength-from-tokens<\/a><\/a><\/p>\n

3. <\/span>“BTC\/USD Forex Signal: Bitcoin Waits for the FOMC Minutes” DailyForex.com, 22 Feb. 2023, https:\/\/www.dailyforex.com\/forex-technical-analysis\/2023\/02\/btcusd-forex-signal\/191805<\/a><\/a><\/p>\n

4. <\/span>“Bitcoin Weekly Forecast: Reversal signs push BTC holders to tread cautiously” FXStreet, 24 Feb. 2023, https:\/\/www.fxstreet.com\/cryptocurrencies\/news\/bitcoin-weekly-forecast-reversal-signs-push-btc-holders-to-tread-cautiously-202302240352<\/a><\/a><\/p>\n

5. <\/span>“Bitcoin on track for 6% weekly loss as investors avoid risky bets after hot inflation data” Seeking Alpha, 25 Feb. 2023, https:\/\/seekingalpha.com\/news\/3940914-bitcoin-on-track-for-6-weekly-loss-as-investors-avoid-risky-bets-after-hot-inflation-data<\/a><\/a><\/p>\n

6. <\/span>“Bitcoin slides to support at $23k as rising inflation sparks a run for the exits” Kitco NEWS, 24 Feb. 2023, https:\/\/www.kitco.com\/news\/2023-02-24\/Bitcoin-slides-to-support-at-23k-as-rising-inflation-sparks-a-run-for-the-exits.html<\/a><\/a><\/p>\n

7. <\/span>“Bitcoin Slips Below $24,000 as Crypto Traders Eye PCE Inflation Data” Barron’s, 24 Feb. 2023, https:\/\/www.barrons.com\/articles\/bitcoin-ethereum-price-crypto-markets-today-dca33115<\/a><\/a><\/p>\n

8. <\/span>“Cryptos Firm Amidst FOMC Minutes, Economic Data” RTTNews, 23 Feb. 2023, https:\/\/www.rttnews.com\/3346194\/cryptos-firm-amidst-fomc-minutes-economic-data.aspx<\/a><\/a><\/p>\n

9. <\/span>“Bitcoin Reclaims $24K on FOMC Minutes Release, Stacks (STX) and Tezos (XTZ) Up Double Digits” Securities.io, 23 Feb. 2023, https:\/\/www.securities.io\/bitcoin-reclaims-24k-on-fomc-minutes-release-stacks-stx-and-tezos-xtz-up-double-digits\/<\/a><\/a><\/p>\n

10. <\/span>“Crypto Prices Today: Cardano (ADA), Polygon (MATIC), XRP (XRP), Solana (SOL)” CoinGape, 25 Feb. 2023, https:\/\/coingape.com\/crypto-prices-today-cardano-ada-polygon-matic-xrp-xrp-solana-sol\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1449,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1450"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1450"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1449"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}