Since the Fed’s recent rate hike, and the broader crypto market have faced increased pressure, forcing investors to turn away from equities and cryptocurrencies’ riskier assets.

Selling Worsen as Inflation Fear Rising

Initial rate increases saw cryptocurrencies and equities crash due to the initial effect. The first round of sell-off saw the price of Bitcoin fall 9% approximately after the Fed’s announcement.

The sell-off continued as TerraUSD’s (UST) peg broke. The crypto market was sent into total mayhem following the subsequent UST peg loss and Terra’s (LUNA) 99% fall.

Bitcoin falls to 16 month low

Due to the intense market fear, a sell-off was triggered which saw Bitcoin prices fall by over 30% within the span of seven days.

Bitcoin’s 7D price chart. Source: CoinMarketCap

Bitcoin’s price has fallen from $39.5K, its most recent peak, to $26,350. Bitcoin has fallen below $27,000 after the crash of the markets, wiping out its gains and wiping them all in 2021.

Bitcoin has fallen below $27,000 over the last 24 hour, and more than 428,000 traders lost a combined $1.22 trillion.

Flipside

• Despite Bitcoin’s plunge under the critical $30,000 level, whales have Continue buying the dipThis is due to an increase in the exchange rate.

What You Need to Care About

An indication that the Luna Foundation Guard may have been selling BTC assets added panic to the market, which in turn drove Bitcoin’s price down.

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