“Cryptocurrency market has been in red since the December 4, 2021 sell off and there seems no relief for the crypto investors. Many are speculating that the crypto winter is here as the feds will be coming hard on tapering and increasing interest rates in the next few months. Though the Bitcoin price went up by 1.6% in the last 24 hours.”
Last week was the worst performing week for the crypto market as the market saw lowest prices since the flash crash of May 2021. Bitcoin is currently changing hands at $35,137 which is a 17.49% fall in the last 7 days alone. The current unusual sell off was the resultant of charged emotional selling by the investors as the increased rate of interest by the Feds is nearing and many people have started to believe that the crypto winter is here.
The altcoins took even a bigger hit and many fell by over 30% in the last week. Ethereum is trading below $2500. It is the lowest that Ethereum got in the last 6 months. The market has been in extreme fear since last month and it is currently at a value 13 on the fear and greed index which indicates “extreme fear”.
One of the major drivers of bullish trend in the last two years of the crypto market is the pandemic-related monetary stimulus and as it is now going away, creates an extreme fear in the market and is driving people to panic sell as many people are still in profit even after this sharp fall.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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