- Earlier today, the price of Bitcoin fell below $62,500 during one of the greatest weekly declines in the history of the cryptocurrency industry.
Due to uncertainty surrounding monetary policy and a six-day run of withdrawals from US Bitcoin ETFs, the top cryptocurrency is currently trading at its monthly low of approximately $62,490. In the past week, the price of bitcoin has decreased by 6%.
Ethereum, the second-most popular cryptocurrency, dropped more than 6% during the previous seven days. According to Coingecko data, ETH traded at almost $4,000 at one point this month before falling to $3,360 at the time of writing.
Only one rate cut by the Federal Reserve this year
This month, the Federal Reserve held steady its benchmark interest rate and signaled that it might only drop rates once this year, as opposed to the three reductions it had previously predicted. Although there are some indications of a slowdown in inflation, the Fed has yet to achieve its yearly objective of 2%.
Cryptocurrency is negatively impacted by high interest rates because speculative, risky investments like cryptocurrency become less appealing during these periods.
Deepening Corrections in Every Major Altcoin
With a 3.5% correction in the previous day alone, the entire cryptocurrency market is now worth $2.39 trillion. Prominent altcoins with recent declines of 6.6%, 16%, and 4%, respectively, are BNB, Solana, and XRP.
Even if Telegram’s TVL has been doing well lately, its all-time high of $8.25, reached earlier this month, has dropped by about 13%.
The best meme coins In the past day, Dogecoin, Shiba Inu, and PEPE have all decreased by 5%, 6%, and 11%, respectively. Dogwifhat took the biggest hit as it had already lost nearly half of its gain in the previous week.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
