Fears that Bitcoin could drop below the $20,000 mark also kept traders on edge. The weakness is expected to continue if the global macroeconomic scenario does not improve.
Except for dollar-pegged USD Coin and Tron, most crypto tokens were trading with gains on Wednesday. Solana gained as much as 6 percent, while Ethereum was up 5 percent. BNB was also up 3 percent.
The global cryptocurrency market capitalization was trading sharply lower at the $971 billion mark, rising around 3 percent in the last 24 hours. However, the total cryptocurrency trading volume fell around 26 percent to $126 billion.
Before the US Fed’s rate hike decision, most markets were in the red. Many market participants are now expecting a 75 bps hike and will likely be listening closely to how the Fed plans to move forward, said Dashan Bathija, CEO and co-founder of Vauld.
“Glassnode data also shows that trading inflow increased over the last two days – once again this indicates a fearful sentiment in the market as most investors are selling and exiting the markets,” he added. .
Coinbase Global is laying off around 1,100 employees as part of a cost-cutting plan, the company said in a filing. Coinbase initially said in May that it was winding down its hiring plans, and later said it would rescind new job offers.
Crypto-tracked futures lost more than $1 billion in the past 24 hours, weighed down by weak sentiment for bitcoin and other cryptocurrencies amid a weak global economic outlook, data shows.
The largest altcoin, ether (ETH), is underperforming bitcoin (BTC), just as it did during the downturn in crypto markets in 2018, Morgan Stanley said in a report.
The CEL token of beleaguered crypto lending platform Celsius jumped eightfold to an intraday high of $2.57 from 30 cents, according to data from FTX.
The drop in the price of bitcoin (BTC) has led to new questions about whether MicroStrategy (MSTR) may have to divest or pledge more of its 129,218 coin stack.
Technical view of the BuyUcoin cryptocurrency exchange
Ether drops below the $1,200 mark. Ether’s move is usually paired with Bitcoin as it is down nearly 75 percent from its all-time high in November of last year. Financial markets are facing heavy sell-offs as investors exercise their stop loss option.
Crypto lending platform Celsius has blocked all withdrawals following the market crash that triggered a sell-off in crypto assets.
The expectation of a higher interest rate from the Fed is also affecting market sentiment as a result of which Ether is under tremendous pressure. If the current trend continues, Ether could find a wafer lower at this support level at the $1,000 mark.
The uptrend in Ether prices may not be possible until we hear some positive news from the upcoming consumer price index and the easing of monetary policy by the Federal Reserve.
(Opinions and recommendations provided in this section are those of analysts and do not represent those of ETMarkets.com. Please consult your financial advisor before taking any position in any of the listed assets.)