Why Is Crypto Today Crumbling As Altcoins Turn Deep Red?

The cryptocurrency market has turned red overnight and is experiencing extremely negative feelings. Bitcoin has dropped about 2% in the last 24 hours, while Ethereum has lost nearly 3%. BTC is presently at $19,100, while ETH is about $1,281. The remainder of the crypto altcoins market, on the other hand, is facing a massive meltdown.


Ripple’s XRP has dropped over 7% in the previous 24 hours, halting its recent climb. Cardano and Solana, on the other hand, continued on their downward spiral. Cardano fell over 6%, while Solana down about 4%. Despite strong fundamentals, Chainlink is falling as a result of deteriorating macroeconomic conditions. It is presently trading at $7.22, down 4% in the previous 24 hours.


Ethereum Classic remains one of the crypto market’s worst performers. The Ethereum merger was expected to benefit ETC significantly. ETC, on the other hand, continues to disappoint its investors. It has dropped another 11% in the last 24 hours and is now trading at $24.


Why Is Crypto Crashing Right Now?

The crypto market is falling as a result of the Federal Reserve’s aggressive macroeconomic conditions. The cryptocurrency market is currently focused on the Consumer Price Index, which will be released on Thursday. The CPI is a good indicator of the country’s inflation rate. Last month, the released CPI was lower than predicted. As a result, the cryptocurrency market experienced a catastrophic massacre.


Similarly, the Producer Price Index will be released later this month. Key Fed officials have reiterated their hawkish stance on inflation. The CME Fed Watch tool presently predicts a 75 basis point interest rate increase. If the published CPI and PPI are lower than predicted, the market may price in a 100 basis point increase. This behavior resulted in a big sell-off in the cryptocurrency market last month.


Will the Recession Be a Blessing?

Fed officials maintain their hawkish stance. However, concerns about global financial instability are growing. On Tuesday, the International Monetary Fund will publish its Global Financial Stability Report. Concerns about an impending recession may cause the Fed to change course.

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