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According to Watcher. Guru, as of August 19, the total market value of global cryptocurrencies has dropped to $1.1 trillion
According to Watcher. Guru, as of August 19, the total market value of global cryptocurrencies has dropped to $1.1 trillion
01 September 00:55
TL: DR
Coinmarketcap reported on August 19 that the crypto market capitalization fell to $1.1 trillion, and the total crypto market volume decreased by 9.68 percent to $65.03 billion.This crash occurred because of leaked news that there would be an increase in interest rates to curtail inflation. This news is yet to be explicitly announced.More information about the plans of the Fed will be conveyed next month when the FOMC holds its next meeting. However, several experts have predicted a positive turn of events soon.
On August 19, Coinmarketcap reported that the crypto market capitalization fell to $1.1 trillion, and the total crypto market volume decreased by 9.68 percent to $65.03 billion. In this rapid fall, bitcoin fell by 2.76 percent to $22,804. In addition, trading volume decreased by 13.1 percent to $25.9 billion, resulting in a market cap decrease of 2.75 percent to $436.1 billion.
The crypto market crash
A market reality check came just when investors thought a recovery was underway. Instead, leading cryptos were trading down by double digits as most cryptos continued to shed previous gains.
The crypto market has experienced a series of fluctuations in prices in 2022. However, August 19 was a notable event as there was an almost 8% drop in bitcoin 5% drop in Ethereum while other cryptos suffered a serious decline. The market also saw a massive liquidation of over $550 million in assets. The market capitalization eventually dropped by 7% as it was capped at $1.09 trillion.
Why did the Crypto market crash?
The crypto market crash came as a reaction to the news that the Fed is planning to raise interest rates more to tame inflation. There, however, has not been an explicit public announcement of this plan.
According to the FOMC Minutes Meeting, the policymakers had concluded that previous attempts to tame inflation were unsuccessful. Thus, there is a greater probability the Fed will raise interest rates in September as the next meeting is slated for September 20 and 21.
There are also rumors of plans that the Federal Reserve officials are planning to double the rate at which the balance sheet shrinks in September. However, this news will be confirmed when the Fed announces the next interest rate hike.
This is what the FOMC Minutes say:
Conclusion
Despite the recent crypto market crash leading to a reduction in its total market cap, several experts expect the crypto market to improve soon.
For example, the founder and CEO of KoinX, Punit Agarwal, said it's not usually the case that markets react to what's happening or what happened in the past couple of months, but rather what's to come. He further reiterated that a futuristic view of the market keeps the Crypto market resilient & reaffirms its bright future.
Also, while speaking to Business Standard, Edul Patel, the CEO, and co-founder of Mudrex mentioned that we might see BTC reach US$25,000 soon if the bull rally continues with limited sell-offs. However, if a broad accumulating trend breaks this level, Ethereum may test the US$1,800 mark next. He also mentioned that we might see Ethereum test the US$2,000 level in the coming week if the bullish run continues.
Author: Gate.io Observer: M. Olatunji
Disclaimer:
* This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
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