The widespread declines are led by Solana, Dogecoin and Cardano. In the midst of the chaos that fills investors with uncertainty and after the collapse of LUNA, Tether loses its parity with the dollar.
“All asset classes except commodities have been dragged down by a sharp sell-off. Risk aversion soared as the Federal Reserve stepped up its tightening monetary policy by raising interest rates on the back of inflation and tightened financial conditions Bitcoin (BTC) decline started earlier (six months), was deeper (-60% from $69,000), but made significantly worse by ongoing contagion from stablecoin UST/USD, although it is also the less surprising (it’s the 10th crash of the decade),” said Ben Laidler, global markets strategist at eToro.
According to some analysts, these decreases are explained by the high levels of inflation in the United States and by the tightening of the monetary policies of the central banks. All in all, Bitcoin and Ethereum are the ones that endure the most, since other less popular ones, such as Polkadot or Cardano, leave 80%. In addition, Bitcoin’s fall exceeds 61% losses from the all-time highs it reached on November 10, 2021, when it reached $68,991. In social networks, experts speak of “collapse”, while some investors in these currencies expect a rebound effect and ask that it be ‘hold’, that is, not to sell.
The fall does not seem to be exclusive to cryptocurrencies: a similar message could come from the global economy if we take a look at the big technology companies, whose shares on the stock market have also lost a lot of ground since reaching all-time highs a few months ago.
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Source: Ambito
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