Selling pressure increases after US Fed Hikes Interest Rates, hitting cryptocurrencies, including Bitcoin, Ethereum, Shiba Inu and Dogecoin.
Bitcoin (BTC) prices fell the most in almost a month after the US Federal Reserve raised interest rates on Wednesday. According to sources, $100 million in BTC was liquidated within one hour after the news of the interest rate rise.
As of Thursday morning, BTC has dropped as much as 8.4 percent to $36,410.49, the most intraday decrease since April 11, 2022.
Hikes Interest Rates
At 8.50 a.m., the global crypto market value had dropped 7.46% to $1.67 trillion. According to Coinmarketcap statistics, worldwide crypto volume increased 14.26% to $115.05 billion.
Aside from Bitcoin, Ethereum (ETH) was trading 6.8 percent down at $2,743.84, according to Coinmarketcap statistics.
“The crypto market has plummeted in response to the realities of rising interest rates and a shaky global economy.” Bitcoin, the market leader, is down 8.4 percent, while Ether is down almost 7 percent. Other big cryptocurrencies and crypto tokens are also losing ground. The equities market collapsed with the crypto market, indicating that the market is not prepared to combat inflation. According to Gaurav Dahake, CEO and creator of Bitbns, “similar retracements and recoveries may occur this week.”
Among other notable currencies, Cardano (ADA) was down 11.64 percent at $0.7856, Algorand (ALGO) was down 8.31 percent at $0.6667, Binance Coin (BNB) was down 6.66 percent at $377.21, Solana (SOL) was down 11.66 percent at $83.89, and Polkadot (DOT) was down 11.66 percent at $14.44.
Fairy Forest NFT (FFN) was the day’s biggest gainer, up 2328.88% to $0.001744. TABI (TABI) was the biggest loss, down 90.73 percent at $0.007674.
Prices For Meme Coins And DeFi
Dogecoin (DOGE) fell 6.53 percent to $0.1279. It has a volume-to-market-cap ratio of 0.07081. Shiba Inu (SHIB) dropped 7.14 percent to $0.00002016.
Dogelon Mars (ELON) was down 7.99% at $0.0000008675, Floki Inu (FLOKI) was down 15.24% to $0.00001432, and Samoyed Coin (SAMO) was down 11.9% to $0.01284.
YFI (yearn.finance) fell 6.64 percent to $17,169.53 in the DeFi segment. Terra (LUNA) was trading at $80.85 with a 7.21% loss. Avalanche (AVAX) was down 15.03 percent at $58.28, Uniswap (UNI) was down 8.39 percent at $7.29, and Aave (AAVE) was down 12.53 percent at $140.92.
Federal Reserve Chairman Jerome Powell announced the largest single interest rate raise since May 2000 at the latest Federal Open Market Committee (FOMC) meeting. He also said that interest rates would be raised by 0.5% later this year. Following this statement, Bitcoin saw significant selling pressure, with as much as $100 million traded in one hour, according to Cryptopotato.
In other developments, the state of Hawaii has sent a bill to the state senate requesting the formation of a task group to oversee cryptocurrencies and blockchain laws. Hawaii’s Commerce and Consumer Protection (CPN) and Ways and Means (WAM) committees overwhelmingly approved the creation of this new task force to regulate cryptocurrencies and blockchain goods such as Web 3.0. TO LEARN MORE ABOUT WEB 3.0 APPLICATIONS, CLICK HERE.
Legislators Donovan Dela Cruz and Roz Baker addressed a letter to Hawaii State Senate President Ron Kouchi in favour of a Crypto and Blockchain Task Force. “The task force shall review data and other aspects of the blockchain and cryptocurrency industry throughout the country, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors, to be regulated within the jurisdiction and purview of the Division of Financial Institutions of the Department of Commerce and Consumer Affairs.”