The cryptocurrency market is suffering from a price collapse, and it seems that investors are selling en masse due to fears of higher inflation. Investors have also stopped investing in riskier assets, which is also reflected in the stock markets.
Bitcoin, the largest and most popular crypto, has fallen to $23,500 Dollars. This would be the lowest point the crypto asset has fallen to in 18 months. On the other hand, almost all altcoins, starting with Ethereum, have seen significant price declines since the weekend.
Ethereum, the second largest cryptocurrency by market cap, is trading on around $1,238 dollars. On the other hand, Solana has dropped more than 18% and is around the price of $27 dollars.
Experts say that the fall of the The price of cryptocurrencies indicates a decrease in the risk that investors are willing to take in this highly volatile market. And it is that, with all its uncertainties and volatilities, cryptocurrencies are considered one of the most volatile instruments for investment purposes.
“The crypto market has been under pressure from the Federal Reserve, increasing the interest rates to combat inflation in recent months. Bitcoin, Ethereum and most other cryptocurrencies suffered losses over the weekend after a sell-off after data showed US inflation peaking at 27 years,” said Edul Patel, co-founder and CEO of crypto investment platform Mudrex.
“As investors seem to have panicked, the number of cryptocurrency selloffs has been high since Friday. Bitcoin and Ethereum plunged as much as 7% each and are currently trading at their lowest level at (around) $23,000 and $1,300. The downward trend is likely to continue in the coming days”, he added.
Although alternative currencies, such as Ethereum and Solana, have historically underperformed Bitcoin, this time under additional pressure from potential regulatory changes. A CoinDesk report quoted an expert as saying that only a small number of altcoins are likely to survive these market moves.
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