The crypto market crash of this year left a considerable impact that continues to be felt today as top coins fall even more. Bitcoin has hit new lows, dropping further than before.
Bitcoin is down by 21.33% in the past seven days. With a market cap of $472.55 billion, selling at $24,677.65 as of this writing.
With Bitcoin at its lowest in three years. The entire crypto market is reeling from fear that it could sway investors and cause them to stop investing.
With Bitcoin taking a hard hit, other coins are feeling the effects worse than ever before, especially alternative coins.
The price of Ethereum has been seeing major fluctuations in recent days. The coin peaked at $4,900 last year. But following the market crash it went down 33% to sell for less than half that amount at just over 1 thousand dollars. Other cryptocurrencies also experienced double digit losses.
Read also: Analysts Point to Bitcoin Bouncing Back with the Recent Inflow in the Crypto Market
The crypto market lost more than $100 billion over the weekend. Following United States Treasury Secretary Janet Yellen’s gloomy warning about cryptocurrencies.
However, Bitcoin bulls have a silver lining with a market cap of $472.55 billion. Giving them increased control over alternative crypto coins.
Bitcoin’s value has been steadily declining for the last seven days. At one point, it was closing in on $32K, but it took a sharp decline, losing more value.
Crypto appears to be losing the ideal opportunity to illustrate its forgotten function as a hedge against inflation. Said Rich Blake of cryptocurrency startup Uphold.
With inflation rates rising to an estimated 8.6%, Bitcoin’s volatility increased and played a role in its plunge over the past few days.
The crypto market is not immune to the volatility that has plagued traditional markets in recent months. For example, when stock prices dropped 2.5%, respectively for both S&P 500 and Dow Jones Industrial Average, it was clear there would be an impact on cryptocurrency values as well. The Nasdaq also mirrored this trend with its own steep dropoff of 3.5%.
The Federal Reserve will hold a two-day meeting next week that is expected to result in yet another interest rate hike. Janet Yellen has discouraged Americans from putting cryptocurrency into their 401(k) plans, warning it could lead them down an unpleasant path.
Read also: Glimmer of Hope for Bitcoin Before Going Red Again