Ether, ADA Lead Steep Crypto Slide Amid Dollar Strength
The strengthening dollar sent currency markets into decline. This caused cryptocurrencies to run above resistance levels for almost a week.
In the past 24 hours, both Cardano’s ADA and Ether (ETH) have dropped by almost 9%. After a week's worth of gains, they have become the greatest decliners among major cryptocurrencies.
Ether’s slide came in spite of the Bellatrix upgrade activation.
Bitcoin (BTC) fell 5.5%, hence trading under $18,900.
Solana’s SOL and BNB fell 5%.
XRP dropped 4%.
Polkadot’s DOT lost 7%.
Futures tracking major tokens earn $327 million in liquidations.
For the first time since July, cryptocurrency total market capitalisation slid below $1 trillion. Losses on dogecoin, Shiba Inu (SHIB) and meme coin averaged 6%.
Ethereum Classic’s ETC fell 16%. This happened after a double-digit rally on Tuesday, with Terra’s old luna classic (LUNC) token experiencing a 20% slide after experiencing more than doubling over a week.
The dollar climbed overnight. Hence, hitting a 24-year high against the Japanese yen. Analysts at Arcane Research had sounded warnings about an increase in the coming days after the August release of U.S. Consumer Price Index (CPI) data on September 13.
The European central bank is going to make its interest rate decision on Thursday. There is a forecast that there will be a hike in rates by the European Central Bank by 75 basis points.
These large events, combined with the merge, might be an activator for going forward. For bitcoin, the tightening Fed’s anticipated presented a “bad outlook”, said Chris Esparza, the creator of decentralised finance (Defi) protocol vault finance.
Esparza said, “Tightening works by reducing cash printing to support the economy as we noticed in the COVID-19 pandemic years”.
Esparza told CoinDesk that Bitcoin investors should focus on the basics of the asset rather than depending on macroeconomic market gauges.
With countries putting together functional regulations to guide the growing ecosystem, there is bound to be long-term growth in the level of adoption. This is creating a positive approach for investors to stack up now.
I enjoy marketing, technology and business. I help businesses and brands connect with their ideal customer profiles and build products that excite them and solve their problems.