Fed uncertainty brings BTC and ETH market down by 6%
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Bitcoin and Ethereum are down 6% as investors remain concerned about the Fed tapering policy and Fed market drops.
Due to the COVID-19 omicron variant, new comments from Fed Chairman Jerome Powell suggest that officials may defer tapering their bond-buying program.
The fed market’s problems from last week have yet to be resolved. According to CoinGecko, Bitcoin and Ethereum were down about 6% from the previous day as of Monday afternoon.
Last week ended with news that Chinese real estate developers Evergrande and Kaisa had failed to make US dollar bond payments, causing stock and cryptocurrency market to fall. According to analyst and trader Alex Kruger, we may also be seeing the impact of “performance fees, bonuses, audits, wash sales, [and] tax loss harvesting” on Friday.
The pressing question now is whether the Fed market Reserve will change its plans to slow down its bond-buying program, ending it in March rather than June. On Monday, the impact was visible in both crypto and traditional markets.
Since Friday, the price of Bitcoin has fallen. It has been trading at just over $47,000, down 31% from its all-time high of $69,044.77 set on Nov. 10, 2021. And Ethereum, which was trading at slightly more than $4,000 at the end of last week, fell over the weekend. According to CoinGecko, it was trading at around $3,800 on Monday.
Other coins in the top ten appeared to be doing worse. Solana’s native SOL was down 9 percent from the previous day, while Cardano’s ADA was down 7.5 percent. Meanwhile, the global crypto market cap was $2.26 trillion, a 5% drop from the previous day.
Even exchange-traded products linked to crypto market, such as the Grayscale Bitcoin Trust (GBTC) and the ARK Innovation ETF (ARKK), fell 4% and 3%, respectively, on Monday.
Traditional markets fared little better. According to Yahoo Finance, the New York Stock Exchange Composite has dropped 124 points, or 0.75 percent, since it opened…
