Crypto showing red in the market, what could be the reason?

in #hive-1679222 years ago

The majority of the cryptocurrency market is currently trading in the negative as the week has just begun; this is partly because the US Federal Reserve Bank will soon announce a rate hike. Investors in both the traditional shares market and the cryptocurrency market are preparing for the effects of the announcement. This is particularly true given that August's higher-than-expected inflation numbers (an 8.3% YoY increase in the consumer price index, or CPI) have increased skepticism over the Fed's rate move.

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An aggregator of cryptocurrency price data reveals that in the past day, the prices of all ten of the most valuable cryptocurrencies have fallen by six to eleven percent. Trading at over $18,400, the market leader Bitcoin (BTC) experienced a decline of about 8%.The second-largest cryptocurrency, Ethereum (ETH), also had a day-to-day decline of 11% and is now trading at roughly $1,290. In addition, the current price of ETH is down 26.1% from the one-month peak price of over $1,800 it hit in the week prior to the Merge. At the time of checking it out yesterday, BNB, XRP, ADA, SOL, and DOGE had declined roughly 7%, 11%, 10%, 8%, and 8.5%, respectively.

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Analysts continue to hold on to the belief that Bitcoin is establishing a bottom despite the choppy market behavior. Until March 2023, the price of the original coin is expected to remain consistent between $18,000 and $25,000, according to a pseudonymous observer of the cryptocurrency industry.

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