Among the ten cryptocurrencies with the highest market capitalization, in addition to BTC, the one that falls the most is Cardano, which loses 10%; Solana 12%, Binance Coin 8%, Ethereum 8.5%), Terra 7%, and Ripple 6.7%.
While Federal Reserve Chairman Jerome Powell downplayed prospects for a 75 basis point (0.75 percentage point) rate hike in the coming months, the monetary authority expressed its willingness to tolerate the recession to reduce inflation.
The sales that have devastated the main financial markets and have left a collapse in the three Wall Street indices, with the Nasdaq taking the worst part, have not left bitcoin and cryptocurrencies indifferent, where a bleeding has been triggered, with more than 100,000 million dollars erased at once.
The Fed hits the markets
The New York Stock Exchange had its worst session since 2020 on Thursday, with investors reversing the previous day’s rebound after a re-reading of Wednesday’s Fed announcements.
The Nasdaq index recorded the third largest loss of points in its history, after the two black sessions on March 12 and 16, 2020, at the beginning of the coronavirus pandemic.
The Nasdaq, with a strong technological tint, lost 4.99% to 12,317.69 points, while the Dow Jones industrial index lost 3.12% to 32,997.97 points and the S&P 500 composite index fell 3.56%. at 4,146.87 units.
“We had one of the best sessions yesterday and one of the worst today,” said Angelo Kourkafas of Edward Jones.
After Wednesday’s enthusiasm over comments from Federal Reserve (Fed) Chairman Jerome Powell ruling out a more marked tightening of monetary policy and a 0.75% hike at its next meeting scheduled for June, the market recovered your senses on Thursday.
“The fact that (the Fed) has ruled out a 0.75 percentage point hike doesn’t really change the fact that the economy is slowing down and the Fed is going to tighten monetary policy at a high rate,” Kourkafas said.
“People started to think a little more about the Fed and its communication and realized that things were not going to get any better,” said Maris Ogg of Tower Bridge Advisors.
For her, Thursday’s losses are also explained by the profit-taking that followed the rally the day before, as well as by the rise in bond market yields.
10-year US bond yields rose above 3.10% for the first time since November 2018.
As usual, the first to come under fire from investors were technology and growth stocks, which now weigh more on Wall Street.
Apple (-5.57%), Microsoft (-4.36%), Tesla (-8.33%) or Amazon (-7.56%) lost strongly. Amazon accumulates a retreat of more than 20% since the publication of results last week and erased more than 280 million dollars in market capitalization.
“The market is going to continue to be volatile and saw-toothed until we have confirmation that inflationary pressures calm down and with them bond rates,” Kourkafas estimated.
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Source: Ambito
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