Volatile Crypto Market; Terra Classic Lunc Leads Laggards, Bitcoin Above $19k
Cryptocurrencies are trading volatile and tracking weak global stocks after fears of a recession in major economies such as the US and Europe sparked. The US Federal Reserve’s aggressive approach to taming inflation at the expense of economic growth dampened sentiment further. The Fed has raised interest rates by a further 75 basis points. Wall Street and European stocks fell sharply last week, while energy prices eased and bond yields climbed to multi-year highs. The US currency scaled past the 111 level against a basket of currencies – which also left cryptocurrencies vulnerable against the dollar. Currently, there is a steep plunge in cryptocurrency trading volumes.
On CoinMarketCap, at the time of writing, the $939.57 billion global crypto market is up 0.28% in the last day. However, the total crypto market volume fell almost 37% in the last 24 hours and stands at $49.82 billion.
Meanwhile, the total volume in DeFi currently stands at $3.11 billion – 6.25% of the total 24-hour volume for the crypto market. The volume of all stablecoins is now $45.65 billion, which is 91.63% of the total crypto market 24-hour volume.
Ethereum is the most popular cryptocurrency today followed by PancakeSwap and XRP.
Crypto leader Bitcoin is trading at just over 19,000 marks at $19,090, up 0.5%. The market value is almost 366 billion dollars. The digital coin’s dominance is currently up 0.12% on the day to 38.95%.
Meanwhile, the second largest cryptocurrency Ethereum is performing near $1,331 and is up 0.75%. The market value is around 163.3 billion dollars.
Recently, Ethereum launched the most anticipated merger that led to a transition of proof-of-stake consensus, officially abolished proof-of-work and reduced energy consumption by ~99.95%.
Data from Coinglass showed that Ethereum has liquidated more than $759 million since September 15.
However, both Bitcoin and Ethereum have fallen by almost 5% and 9% respectively in the last seven trading sessions.
Among the top cryptocurrencies in the last 24 hours are — Reserve Rights climbing 9.5% followed by Chainlink up 5.5%. Algorand, Chiliz and eCash rose by 4-5.5%.
On the other hand, Terra Classic Lunc led the list of laggards by plunging more than 7%, followed by XDC Network which lost almost 5%, Stellar and DogeCoin fell more than 3% each. Axie Infinity, Helium, Nexo, Celsius and Synthetix dipped between 2-3%.
Terra tokens are under pressure as Terraform Labs CEO Do Kwon faces multiple jurisdictions. An arrest warrant has been issued by prosecutors in the Seoul Southern District against Kwon who is the progenitor of the TerraUSD algorithmic stablecoin and sister token Luna that allegedly wiped out $60 billion in the cryptocurrency market. Kwon’s whereabouts are unknown, although the co-founder of Terra tokens denied rumors of being “on the run” from government agencies.
Last week, the US Fed said in its latest policy statement, “the Committee is very mindful of inflation risks.”
The FOMC further said, in support of these objectives, the committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent and expects ongoing increases in the target range to be appropriate. In addition, the Committee will continue to reduce its holdings of government bonds and agency debt, and agency mortgage-backed securities, as described in the Plans to Reduce the Size of the Federal Reserve’s Balance Sheet issued in May.
The FOMC is committed to bringing inflation back to its 2% target.
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