Major adverse feelings have emerged overnight, turning the cryptocurrency market red. In the past 24 hours, Bitcoin has dropped about 2% while Ethereum has dropped over 3%. At this time, one bitcoin can be purchased for $19,100, and one ether can be purchased for $1,281. But the remainder of the cryptocurrency altcoins market is about to tumble hard.

Recent Released: Ripple expands in Europe; XRP price may move

The Ripple token, XRP, has fallen by about 7 percent in the last day, breaking a significant surge. In contrast, Cardano and Solana both kept going downhill. Cardano was down 6% and Solana was down about 4%. Chainlink’s stock price is falling despite the company’s solid fundamentals because of the current macroeconomic climate. It has lost another 4% in value during the past day, and is now trading at $7.22.

To this day, Ethereum Classic remains one of the worst performing cryptocurrencies. Most people thought that ETC would increase in value after the Ethereum integration. Despite this, ETC has again again let down its shareholders. Price has dropped another 11% in the past day, to $24.

What Caused Today’s Crypto Crash

As a result of the Federal Reserve’s hawkish macroeconomic conditions, the cryptocurrency market is in a slump. Right now, the cryptocurrency market is keeping a close eye on Thursday’s release of the Consumer Price Index. The Consumer Price Index (CPI) is widely recognised as a leading economic indicator. Last month, the released CPI was worse than the projected prediction. As a result, the crypto market experienced a tremendous carnage.

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Similarly, this month will see the release of the Producer Price Index. Central Bank Hawks continue to sound the alarm about inflation. A rate increase of 75 basis points is currently projected by the CME Fed Watch tool. The market can price in a massive increase of 100 basis points (bps) if the published CPI and PPI are worse than projected. The cryptocurrency market continued its downward trend last month as a result of this issue.

Is the Economic Downturn Going to Save Us?

The Federal Reserve has maintained its hawkish attitude. However, worries about the state of the global economy are on the rise. Tuesday will see the release of the International Monetary Fund’s latest Global Financial Stability Report. It’s possible that the Fed will change course if they start to worry about a recession.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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