The crypto fraternity is experiencing a minor pullback in its momentum. As the industry’s market capitalization sees a fall below its $2 Trillion thresholds. Successively, the precise numbers of the market cap at the time of press are $1,951,047,024,103. The numbers are down 3.5% over the previous day. So are the numbers of a number of digital assets from the crypto directory.
As a result, star crypto Bitcoin lost its grip at levels around $44,000 and is currently changing hands at $42,461.42. The price trajectory of the largest altcoin Ethereum is no different, as it is trading at $2,834.35. While losing 4.7% of gains compared to the day before. Fear has returned to the market, as the Fed Chairman signals during an interest rate hike.
Is A Plunge On The Horizon?
The industry is still fragile to a notable extent, as the panic has been modulating the price action of the market. Consequently, the fear and anxiety have been persistent amidst the ongoing geopolitical tensity. Which is evident on the market’s price charts. The recent update coming in from the FED chairman has escorted fear and anxiety amongst sections in the business.
Federal Reserve Chairman Jerome Powell in a congressional hearing said he considers a rate hike appropriate for the month. The chairman of the meeting told US lawmakers that the Central Bank is on track to raise interest rates in March. Which will be for the first time in three years. That said, the extent of the hike still remains in the fog, which would prevail on March 15th.
In the interim, the fear and greed index has lowered down to fear yet again, at a score of 39. Which was neutral at a score of 52, just the other day. Sections of the fraternity are now anxious over another possible crash. Coming even before the market settles from the impacts of geopolitical tensity. While the implications would not be extreme, a 25-30% correction could be on cards.
According to Lunar Crush statistics, it is learned that the global measures sailed in high winds. While Social Volume is down 5.6% on the week to 10,347,080, Social Engagement is down 3.4% to 21,999,185,603. which increased slightly by 0.2%. Bullish sentiments are down 3.4% at 7,572,060.
Summing up, as aforesaid the implications although not drastic we can expect the sentiments going negative. Which will eventually reflect on the price action of digital assets, that could move sideways until the hike rate is announced. The repercussions could result in another 25-30% correction.
