At the end of July, everything seemed to be looking for crypto.
After being stuck around the $20,000 range since mid-June, Bitcoin, which accounts for 41% of the crypto market, rallied above $24,000 last week in a following rally. Fed announces three rate hikes quarter of a percentage point for the second time in two months.
But on Tuesday, that rally clearly faded as Bitcoin traded down 3% to around $22,753 in the 24 hours since early Tuesday — its third day of losses. Ethereum, the second most popular cryptocurrency, fell even more, recording a 6.4% drop to around $1,574 in 24 hours which was also its third day of mostly down, according to CoinMarketCap.
Macroeconomic factors appear to be driving crypto prices down along with the broader market — specifically, investors are ignoring the possibility of a geopolitical conflict between the United States and China as US House of Representatives Speaker Nancy Pelosi plans to visit Taiwan on Tuesday.
Investor anxiety on Tuesday was enough to push even crypto’s highest-flying tokens, like Ethereum Classic and Filecoin, down 1.4% and 9.5%, respectively, on Tuesday.
Ethereum Classic, which resulted from a 2016 division of the Ethereum platform, saw a 49.7% increase last week as a number of traders and miners were upset with the impending transition of the Ethereum Network. to proof of stake (will remove mining) bought in . For its part, Filecoin has increased by 56.8% in the past seven days in part due to a new collaboration with Harvard University’s Library Innovation Lab, before dropping out on Tuesday.
Tuesday’s drop in Bitcoin and Ethereum comes after a week of good news. After the Fed announced it would raise interest rates, Bitcoin led a wave of bullish market sentiment, lifting the S&P 500 index to 2.6% and the heavy tech index. Nasdaq 4%. The world’s most popular cryptocurrency briefly surpassed $24,000 on July 27 before narrowing the gains again. The lingering optimism sent Bitcoin to a 30-day high of $24,572 on July 30, according to CoinMarketCap.
Ethereum also benefited, hitting a 30-day high of $1,774 per coin on July 28 based on the upbeat sentiment from the Fed rate hike as well as high hopes that the upcoming update of the coin. it’s called “Merge”, it’s set on September 15, would be a boon for cryptocurrencies.
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