according to crypto slate Cryptocurrency market capitalization has fallen below $1 trillion, hitting a three-week low, according to data. Similarly, market leader Bitcoin lost $22,000 as the bears ruled.

Notable headwinds have intensified in recent days, with Silvergate entering voluntary liquidation and growing speculation that the Fed will raise rates by 50 basis points after the next scheduled FOMC meeting. March 22.

Crypto Market Loses Momentum For 2023

The market capitalization has slumped to $994.6 billion at the time of writing. This is a level not seen since his February 13th, when the Paxos/Binance USD situation surged and caused market panic.

New York regulator to Paxos Suspension of issuance BUSD objection to claims that stablecoins are not 1:1 backed by the US dollar.

A strong start to 2023 saw the total market cap rise from $795.2 billion to $1.134 trillion on February 21st. The trough-to-peak move represents his 42% increase in valuation.

However, the aftermath of a string of cryptocurrency bankruptcies has caught up, and crypto buyers are showing signs of letting go of their positions, not forgetting the ongoing macroeconomic uncertainty.

The Relative Strength Index (RSI), which measures market momentum, is currently at 38 and climbed to 85 on Jan. 15.

The previous 38 was on December 31st, which means the cryptocurrency market has lost all market momentum for 2023.

headwind

On March 8, Silvergate announced its intention to wind down all operations and enter into voluntary liquidation. Solvency rumors circulated after crypto banks said he would not meet his 10-K filing deadline on March 16.

In response, several cryptocurrency platforms have distanced themselves from the beleaguered banks. Most recently, KuCoin CEO Johnny Liu I tried to reassure the user of his exchange.”no business relationship“Silver Gate and its”All user funds are safe

Lyu signed off, saying he hopes this is the final piece of “sad news” for this cycle.

Fed chair to address the Senate Banking Committee on Tuesday Jerome Powell The central bank said it was ready to accelerate rate hikes if needed.

“If the data as a whole shows that a faster tightening is warranted, we would be ready to accelerate the pace of rate hikes.”

Fed Chair Powell’s new hard line puts more pressure on risk-on markets as the probability of the target rate flips to 78% for a 50 basis point rate hike after the FOMC meeting on March 22. .

Federal Reserve Forecast
sauce: cmegroup.com

By Jules

Leave a Reply