(Bloomberg)-This weekend has had a lot of pressure in the cryptocurrency market. The selling compulsion is even more, which brings out some debates among top investors. Ethereum went down by 7%, while its top neighbor Bitcoin slides by 4% only. All this happened on Sunday late afternoon in the US trading market.
On Saturday at 4:15 pm, a single bitcoin was selling at $35,300, a reduced market cap. It is the largest cryptocurrency, and therefore we expect a positive rise rather than a drop. Unfortunately, earlier within the week, it got worst, up to $34,042.77. This is a loss of 50% compared to the highest point it ever achieved in November 2021. The best thing is that it’s not alone. Even the other cryptos are experiencing this drain.
Millions of crypto traders are very annoyed with negative reactions. The Fed and white house regulations have led to a decline in the price of Ethereum. Ether is the second dominant cryptocurrency in the world. Furthermore, there has been a threat about banning crypto in Russia. Even the new coins in the pre-seed season have failed because of strict regulations.
Bitcoin has reduced its value by almost 20% for the past one month while Ether 30%. Solana, which was said to be the bitcoin competitor in 2022, has fallen by 38%. In addition to that, the meme coins have also received a big blow. Dogecoin reduced by almost 30% within a single week, while its counterpart Shiba Inu fell by 38%. The report is from the CoinMarketCap.
In an interview with Caroline Leigh on Bloomberg, Starkillers Capital Leigh said crypto is a risky asset moving up and down. He proceeded, “It’s even more of a risk asset now that most of the crypto market cap is Ethereum, Solana, and all sorts of other stuff that is just basically technology where we’re pulling forward massive assumptions of global growth into the present.”
The financial experts insisted on comparing the two top cryptos in the market. The ratio of bitcoin to Ether has a great meaning to the industry. According to RBC Capital Markets, Amy Wu Silverman, for some months, the ratio has maintained 0.07. Then abruptly, Ether dropped the worst to a range of 0.069.
Wu Silverman said it’s something like a risk of correction from both boards of the respective cryptos. No investor can hide from this painful truth. You cannot run away from the things that are not controlled by a government nor aboard. On Saturday, he wrote this “Watch the ETH/BTC ratio from .055-.088. The .055 MUST HOLD.”
Apart from Wu, Noelle Acheson was also shocked by the Ethereum slide. Noelle is the head of market insights at Genesis Global Trading Inc. She takes it as a reminder that Ethereum is more vulnerable than bitcoin regarding micro-driven swings of risk.
She wrote an email to Bloomberg with this message.” This reminds us that BTC is a risk asset that is getting hit in the risk-off sentiment. But that ETH is even more so (it has lost over 40% of its value over the past 30 days!); it is strange to see BTC a strong outperformer today.”
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