- Crypto markets lost $140 billion after market sentiment turned sour on nervousness surrounding the Federal Reserve’s recent inflationary maneuvers
- Bitcoin plunged 10% to mark its second-largest intraday decline this year, trading at its lowest in four months
Bitcoin marked its worst daily decline in four months on Thursday, falling nearly 10% to lows not seen since January.
The top cryptocurrency by market cap started the day at $39,727 but slipped below $36,000 by afternoon ET, the data said CoinMarketCap Data.
Bitcoin has only fallen this sharply once in a single day this year. On Jan. 21, BTC opened at $40,699 but gradually fell 12% to trade below $35,800 by the end of the day.
The rest of the crypto market followed suit. Ether lost about 7% while Solana was the hardest hit of the top 10 digital assets with a 15% loss.
Cryptocurrencies are down 7.5%, or $140 billion, from $1.9 trillion to $1.76 trillion, the lowest market cap since February.
Weak crypto reflected sentiment across all stocks. In intraday trading, the Dow fell 3.5%; the S&P 500 fell 5%; and the NASDAQ lost 5.5%. On the other hand, 10-year government bond yields rose by 3.1%.
The losses came despite broad market enthusiasm on Wednesday, as both the S&P and NASDAQ gained about 3%.
Analysts thought the widespread rally in relief showed confidence in Federal Reserve Chair Jerome Powell’s ability to rein in inflation without triggering a recession.
Powell had pledged not to raise the benchmark rate by 0.75% anytime soon, instead reaffirming his 50 basis point strategy. The markets shot up – for now.
The post “Bitcoin Hit Hard by Inflation Fears, Suffers Worst Daily Drop Since January” is not financial advice.
Source: Crypto News Austria