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Highlights
- Today's crypto market is in shambles, with key cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, Tether, Solana, Cardano, and XRP plunging by 5% to 6% overnight.
- The Federal Reserve's minutes from its December meeting impacted the cryptocurrency prices along with stock markets.
- The minutes revealed that Fed were prepared to engage even more aggressively to combat inflation, potentially tightening business conditions.
A New Year, New Hope! Investors were optimistic that the cryptocurrency sector would see more gains in 2022.
However, today's crypto market is in shambles, with key cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, Tether, Solana, Cardano, and XRP plunging by 5% to 6% overnight.
Recent Article: Crypto Market Crashes! US$1 Trillion Wiped Off In 5 Days
How much downturn have cryptos witnessed?
In 2021, Bitcoin was on a roller-coaster ride, indicating that it is vulnerable. According to Coindesk, Ethereum, the second-biggest cryptocurrency by market cap, is around 50% away from eclipsing Bitcoin as the largest cryptocurrency.
Crypto predictions for 2022
However, the price of Bitcoin has dropped by roughly US$5,000 in just a few hours, from over US$47,000 to around US$42,813.64 this morning. Bitcoin is presently over 36% lower than its all-time high of nearly US$70,000 reached in November. All other digital currencies are following suit, eliminating billions of dollars from the combined US$2.1 trillion cryptocurrency market.
Recent Article: Bitcoin falls over Evergrande’s default risk
What caused the crypto market to plummet?
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Last thoughts
Since Bitcoin's inception, the crypto market has grown exponentially, making many people millionaires in a short time. With the recent decline of the crypto market, many investors' fortunes have been compromised. Investors are now concerned about the crypto market's expected bull run in 2022.
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