The previous intraweek session was dubbed “unfruitful” since BTC and other cryptocurrencies failed to rise much. The market finished about where it began, resulting in the third week of continuous declines.
This week is no exception, although many will argue that it is even worse. The sector fell to a low of $1.76 trillion after opening at $1.83 trillion due to heightened seller congestion. It reached a high of $1.86 trillion before losing steam and resuming its downward trajectory.
Some hours before the time of writing, the valuation had retraced below $1.7 trillion (the lowest in the prior 30 days). The business, which is now valued at more than $1.7 trillion, has lost more than 7% in the last six days.
FED to Raise Interest Rate
The Federal Open Market Committee (FOMC) is expected to raise interest rates aggressively next week, according to a number of financial institutions, analysts, and economists. Lindsay Dunsmuir and Ann Saphir of Reuters reported that “large Fed rate rises are on the way,” citing two reports that predict “hot inflation is peaking.”
In addition to the Reuters article, the ING Group, a Dutch multinational banking and financial services firm, predicts a significant increase on Wednesday. According to the article, the FOMC and Fed Chair Jerome Powell are expected to announce a 50 basis point rate hike.
Market to Enter Bear Phase?
This week, the crypto economy suffered as well, with markets connected with equities. On Saturday, Michal van de Poppe, the CEO, and creator of eightglobal.com, tweeted about the fear in the crypto markets.
“The current level of concern in the markets as a result of the approaching FED meeting is akin to the bear market sentiments in 2018,” stated the founder of Eightglobal. “For the markets and Bitcoin, that says a lot.”
The total value of the crypto economy has dropped from $1.967 trillion to $1.79 trillion since April 25, 2022. Since then, the crypto economy has lost 8.99 percent, including a 1.2 percent drop in the last 24 hours. Against the US dollar, bitcoin (BTC) has dropped 4.9 percent this week, while Ethereum (ETH) has lost 7.6 percent in the last seven days.