AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlight
- Bitcoin, which has over 40% weightage in the crypto market, fell over 6% to US$38,000 levels.
- Crypto market capitalisation has fallen 5.71% to US$1.76 trillion in the last 24 hours, according to CoinMarketCap.
- Crypto fear and greed, which analyses emotions and sentiments from different sources for Bitcoin and other leading cryptocurrencies, has fallen to 21/100.
The cryptocurrency market took a beating on Wednesday following the overnight tech selloff on Wall Street as concerns about global economic growth took centre stage. Bitcoin, which has over 40% weightage in the crypto market, has fallen over 6% to US$38,000 levels, taking the overall crypto market capitalisation to USD1.76 trillion, down 5.71% in the last 24 hours, according to CoinMarketCap.
Not only Bitcoin, but most other altcoins also witnessed a selloff of similar intensity. At the time of drafting this article, Ethereum (ETH) was down 7.11% at US$2,804, BNB plunged 5.4% while Solana and XRP declined by 5.80% and 7.99%, respectively.
Crypto Fear & Greed Index shows extreme fear
This morning, crypto fear and greed, which analyses emotions and sentiments from different sources for Bitcoin and other leading cryptocurrencies, has fallen to 21/100 from 27/100 Tuesday. A value of less than 25 in this index suggests "extreme fear" while a reading above 75 represents "extreme greed".
Also Read: Decentraland (MANA) vs The Sandbox (SAND): How do they stack up?
Worth mentioning here is that this index is hovering between "fear" and "extreme fear" since the beginning of this month. "Fear" and "extreme fear" levels indicate investors' expectations of further correction in the crypto market, hence the selloff.
However, there is another school of thought as well. Analysts say "extreme fear" on the crypto fear and the greed index could be a buying opportunity as well as it represents investors’ extreme worries. Similarly, an extreme grid, which was the reading last month, could indicate corrections may be round the corner.
The tech-heavy NASDAQ index plummeted nearly 4% overnight on top of last week's 3.83% correction. The US Fed policy and corporate earnings weighed on stock prices and spilt over to the crypto market as well. At the same time, the global financial market is also reacting to updates on China's COVID-19 lockdown measures and the ongoing war between Russia and Ukraine.
The announcement of US Q1 GDP numbers Thursday and the news of inflation numbers due Friday are also keeping investors on the edge.
Also Read: Steem (STEEM) crypto surges 60%, volume explodes. What is driving this rally?
Another factor that could be weighing on crypto prices is the value of the US dollar. Bitcoin and other leading digital currencies move in tandem with NASDAQ but are negatively correlated with the US dollar. The DXY or the U.S. dollar index is currently at 102.35, its highest point in nearly two years. The USD is getting stronger against other currencies amid rising inflation, geopolitical tensions in Europe and the resultant supply chain disruptions.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
