The crypto market took another dive yesterday and is crashing. The total crypto market cap has fallen back to $924 billion and continues to drop. Bitcoin has fallen below the $19K mark again and is currently trading at $18,913. Ethereum continues to plummet and is very close to falling below the $1.3K mark again. It is currently trading at $1308.
Cardano is one of the biggest losers of the crypto crash. It broke its upward movement and has fallen over 2% to $0.446. Terra Classic (LUNC) takes an even steeper dive and has fallen close to 16% in the last 24 hours. LUNC has fallen over 30% in the last 7 days. Solana is down by over 3% in the last 24 hours and is trading at $32.53. Meanwhile, DOGE has fallen close to 3% and is trading at $0.06157.
Why Is Crypto Crashing
The crypto market is crashing as the greenback currency, US Dollar, continues to show incredible strength. The U.S. Dollar Index or DXY increased by another 0.64% to reach 113.92. The US bond yields climbed as a result and the stock market took a dip.
S&P 500 slid by 1.72% and NASDAQ fell by 1.66%. The crypto market is strongly correlated with the general broader market. It is especially correlated with the tech-oriented NASDAQ 100.
The dollar’s strength is destroying other global currencies including the British pound. It is also causing damage to the risk assets market such as a crypto crash.
Meanwhile, the Fed continues its hawkish stance against inflation. Its quantitative tightening is the biggest reason for the dollar’s strength. The global economies are also bracing for a recession as the Fed continues to underestimate the slowdown in the economy.
Key Events To Watch
The upcoming speech of Key Fed officials will impact the crypto market. Susan Collins of Boston Fed, Raphael Bostic of Atlanta, and Loretta Mester of Cleveland are due to speak today. Fed chair Jerome Powell will speak on Tuesday.
As the Fed officials will speak on further monetary policy, it can impact the crypto crash.