The previous intraweek session was dubbed “unfruitful” since BTC and other cryptocurrencies failed to rise much. The market finished about where it began, resulting in the third week of continuous declines.
This week is no exception, though many would say it’s even worse. The sector fell to a low of $1.76 trillion after opening at $1.83 trillion due to increased seller congestion. It peaked at $1.86 trillion before running out of steam and resuming its downward trajectory.
Some hours before the time of writing, the valuation had retraced below $1.7 trillion (the lowest in the prior 30 days). The business, which is now valued at more than $1.7 trillion, has lost more than 7% in the last six days.
The Fed will raise its interest rate
The Federal Open Market Committee (FOMC) is expected to aggressively raise interest rates next week, according to a number of financial institutions, analysts and economists. Lindsay Dunsmuir and Ann Saphir of Reuters reported that “significant Fed rate hikes are underway,” citing two reports that predict “inflation has peaked.”
In addition to the Reuters article, the ING Group, a Dutch multinational banking and financial services firm, predicts a significant increase on Wednesday. According to the article, the FOMC and Fed Chair Jerome Powell are expected to announce a 50 basis point rate hike.
Will the market enter a bearish phase?
This week, the crypto-economy also suffered, with markets linked to equities. On Saturday, Michal van de Poppe, CEO and creator of eightglobal.com, tweeted about fear in crypto markets.
“The current level of concern in the markets as a result of the approaching FED meeting is akin to the bear market sentiments in 2018,” stated the founder of Eightglobal. “For the markets and Bitcoin, that says a lot.”
The total value of the crypto economy has fallen from $1.967 trillion to $1.79 trillion since April 25, 2022. Since then the crypto economy has lost 8.99%, including a decline of 1.2 % in the last 24 hours. Against the US dollar, bitcoin (BTC) has fallen 4.9% this week, while Ethereum (ETH) has lost 7.6% over the past seven days.
