Crypto Market Plunge 5%, Loses $200 Billion Ahead of Biggest Fed Rate Hike
The crypto market has been on the receiving end as the Federal Reserve readies to raise interest rates at a faster pace than previously announced. Fears of an aggressive shift in monetary policy by the Fed have led to severe losses in the crypto market.
Bitcoin and Ethereum lead the drop, losing more than 5% in the last 24 hours. The price of Bitcoin has slumped from $47k down to $43,719 in the last 48 hours. Similarly, Ethereum fell from $3,546 on April 5 to $3,247.
The 48 hours price chart of Bitcoin (BTC). Source: Tradingview
The 48 hours price chart of Ethereum (ETH). Source: Tradingview
The broader crypto market hasn’t been spared either, with the top 25 altcoins dropping between 3 and 10%. As a result of the decline, the crypto market cap has lost more than $200 billion – dropping from its 2022 high of $2.16 trillion to $1.986 trillion.
The global crypto market cap over the last seven days. Source: Tradingview
Despite the price drop, the accumulation of Bitcoin and other cryptos continues as investors anticipate a major rally in 2022.
Solana NFTs are Now Available on OpenSea, Sky Mavis Launches New Axie Infinity Game
Launching on the world’s largest NFT marketplace could give Solana NFT, which offers lower gas fees and faster transaction speeds, greater adoption, and increase NFT sales on OpenSea.
Meta is Developing a New Virtual Currency – the Zuck Bucks
Despite regulatory concerns halting the development of the Diem/Libra stablecoin, Meta Platforms, Facebook’s parent company, is now preparing to launch a new virtual token and lending services for its apps community.
Meta’s new crypto dubbed the “Zuck Bucks” will reportedly be used to reward creators on Facebook and Instagram. The virtual token will also be used in the metaverse and for lending and other financial services.
According to people familiar with the development, the Zuck Bucks may not be based on blockchain. Rather, Meta plans to issue in-app tokens centrally controlled by the company.
With declining revenue as more users switch to newer competitors like TikTok, Meta could use the Zuck Bucks to incentivize its users to keep them.
Binance.US Valued at $4.5 Billion After $200 Million Funding Round
Binance.US, the American affiliate of the global crypto exchange Binance, has raised $200 million in its inaugural funding round – one of the biggest seed rounds in crypto history.
The seed round was backed by RRE Ventures, Foundation Capital, Original Capital, VanEck, and Circle Ventures. The American franchise of Binance.com has now reached a valuation of $4.5 billion.
The funds raised will expand the Binance brand and its product offerings in the United States. The CEO of Binance.US, Brian Shroder, said, “every dollar that we earn will be invested back into the business.”
Binance.US will look to expand its presence in all 50 states by the end of the year. In addition, the company, which had previously not engaged in advertisements, will launch campaigns highlighting its advantages over other exchanges.
The fund will also put Binance.US on its road to an initial public offering. According to Shroder, Binance.US will launch its IPO in two or three years.