Crypto Market Slumps as Bitcoin Drops Amid Fed Hike Fears
The cryptocurrency market is still in a downturn, and investors throughout the world are wary of the IT industry, which is fuelling market volatility. As market players eagerly await the release of the U.S. producer price inflation numbers on Friday morning, the overwhelming predictions of another Fed rate hike in December continue to weigh on market sentiment. According to the CME FedWatch tool, which tracks interest rate traders’ predictions, there is an 87% chance of a quarter percentage point hike and a 13% chance of a half percentage point hike. The market capitalisation of all cryptocurrencies has dropped to $2.41 trillion, with Bitcoin’s price ranging from $72,357 to $74,191 in the last day. There was a total of $528 million in cryptocurrency liquidations in the last 24 hours, according to the data. Long position liquidation totalled $433 million, much more than short position liquidation of $95 million.
At $72,515.00, the biggest cryptocurrency, Bitcoin, is trading 1.7% lower compared to the previous day. In the last seven days, Bitcoin’s value has dropped 8.9 percent. Net outflows from Bitcoin Spot ETF products in the US increased, rising from $95 million on Tuesday to $300 million on Wednesday. With $270 million in net outflows, the market leader iShares Bitcoin Trust ETF topped the list. The news that index producer MSCI was planning to exclude Strategy from all of its global stock indexes was likewise digested by the crypto markets. The company, run by Michael Saylor, is the leading Bitcoin treasury in the world with over 850,000 Bitcoins. It is headquartered in Virginia. Based on market capitalisation, Bitcoin has dropped to the fourteenth spot in the world’s ranking of all assets, according to the source. Between Eli Lilly (ranked fifteenth) and Tesla (ranked thirteenth) is the most prominent cryptocurrency.
Overnight, Ethereum’s value also dropped 2.3% to $2,010.52. In the last seven days, the leading alternative coin has lost 15.7% of its value. The net outflow of Ethereum Spot ETF products in the US increased significantly to $145 million on Wednesday, from $1 million the day before. The largest net withdrawal was $130 million from the iShares Ethereum Trust ETF. According to a source, Ethereum’s market value has dropped to the point where it is ranked 80th among all assets globally. The native coin of the BNB Chain ecosystem, BNB, which ranks fourth, has fallen 3.9% in value and is now worth $655.80. Decreases amounting to 7.8 percent per week. XRP, the sixth-ranked cryptocurrency, fell 2.5% overnight and 20.9% over the previous seven days. Its primary focus is on payments. At the moment, XRP is selling for 1.0344 USD. Sleeping at $81.43, the price of seventh-ranked Solana fell 3.68 percent.
Following a decrease of $13 million recorded on Tuesday, U.S.-listed Solana Spot ETF products had net outflows of $6 million on Wednesday. Trading at a price of $0.3158, TRON is presently ranked 8th overall, having lost 0.52% of its value. Hyperliquid, which is rated #9, fell 3.98 percent overnight, reaching $70.40. After seeing no withdrawals the day before, U.S.-listed Hyperliquid Spot ETF products saw a net outflow of $2 million on Wednesday. Zcash, the ninth most valuable cryptocurrency, fell 2.9% overnight, bringing its market cap to $963.35. Unlike Tuesday, when no flows were reported, $15 million worth of U.S.-listed Zcash Spot ETF products saw net outflows on Wednesday.
