Bitcoin and major cryptocurrencies including ethereum, BNB, luna, XRP, solana, cardano, avalanche, and dogecoin have suddenly sharply moved lower, wiping out about $200 billion from the combined crypto market even as traders are prepared for "big surprises" this week.
The latest bitcoin and cryptocurrency crash, which pushed the market back below $2 trillion, has seen the price of bitcoin drop 5% in the last 24 hours, adding to previous losses, while Ethereum and its biggest rivals BNB, solana, cardano and avalanche lead the market. down market, all down 5% to 10%.
Ripple's XRP and Terra's moon are down 5% and 7% respectively, while meme-based dogecoin, which soared this week after Tesla billionaire and dogecoin supporter Elon Musk bought a significant stake in Twitter and join its board, has plummeted 13%.
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The bitcoin and cryptocurrency market has fallen below $2 trillion like ethereum, BNB, XRP, luna, cardano, ... [+]
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The collapse of bitcoin and crypto comes after Federal Reserve meeting minutes revealed that officials agreed to start whittling down the bank's massive balance sheet by $95 billion per month, likely starting in May. The plans hit stock markets, with tech stocks leading a pullback and resulting in the Nasdaq 100's worst two-day loss in nearly a month.
Earlier this week, Fed Governor Lael Brainard spooked markets when she said curbing inflation was "top" and indicated the Fed would raise rates faster and move faster to reduce its balance sheet than that the market had anticipated.
"The prospect of continued monetary tightening by the Federal Reserve has unnerved stock market investors who have enjoyed the benefits of the US central bank's accommodative policies, adding that they remain optimistic.
โWhile bitcoin and the broader cryptocurrency market have dipped today, the range-bound trading trend appears to remain in place as on-chain data shows overall buying activity remains positive.โ
Bitcoin pulled off exchanges at a record pace last month, according to data from on-chain analytics firm Glassnode, something that is generally taken as a bullish sign as it suggests buyers are looking to hold the coins long-term in place to sell them.
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The bitcoin price has lost nearly 10% over the past week, even as traders and investors flock to it. ... [+]
base of coins
This week, Bitcoin's Biggest Supporters Gather in Miami for Highly Anticipated Bitcoin 2022 Conferencethe follow-up to last year's spectacular event in which El Salvador announced that it planned to adopt bitcoin as legal tender.
Meanwhile, business intelligence software company turned bitcoin hoarder MicroStrategy announced this week that it had bought another tranche of bitcoin, spending $200 million. The company, led by bitcoin bull Michael Saylor, now owns 129,218 bitcoins, valued at around $6 billion.
"The fact that even such a large buyer failed to warm up the market makes us look to the near future with caution," Alex Kuptsikevich, senior market analyst at FxPro, wrote in emailed comments. Since the beginning of the month, the bulls have clearly not been able to develop an offense."
