As of November 2021, the global cryptocurrency market boasts approximately 10,500 cryptocurrencies generating over $3 trillion in volume. According to Statista, this represented more than the cumulative market valuation of the CAC 40 companies combined. 9 months later, this figure has been divided by 3, or 1 trillion dollars. Where did the missing $2 trillion go?
An increasingly aggressive bear market towards cryptocurrencies?
Just yesterday, bitcoin.com reported that the bear has taken another bite out of the cryptocurrency market. In just 13 days, over $240 billion was lost. This represents roughly half of the market sell-offs on August 19th.
The statistics released yesterday show nothing positive either: the capitalization of the global cryptocurrency market is less than $1 trillion, which equates to a 4% drop in 24 hours. To say that a day earlier, this drop was already -6%.
August 19, finbold highlighted a total capitalization of the same market worth $985 billion. Bitcoin had fallen 1.19% on the day, trading at $21,165. Ether had also recorded a decline of 2.97% over the same period. In fact, the top 20 cryptocurrencies by market capitalization had turned red.
Jerome Powel, the killjoy?
At the origin of this carnage, Crypto Potato points to the speech of Jerome Powel, the chairman of the FED, at the annual symposium in Jackson Hole. On that occasion, he did address the FOMC’s intentions to bring inflation down to 2%. This would amount to raising, once again, the Federal Reserve’s interest rates in the coming months.
” If the rise in interest rates, the slowdown in growth and the easing of labor market conditions lower inflation, they will also impact, but negatively, households and businesses.Unfortunatelyvs These are the consequences of reducing inflation. But a failure to restore price stability would have far more serious consequences. “, he had declared.
Long before Powell’s speech, the stock markets reacted: the S&P500, the NASDAQ, as well as that of cryptocurrencies. Of all, crypto assets were the most impacted by its announcement.
Bitcoin (BTC), for example, fell 3.5% to trade at $19,968 per unit yesterday. At the time of writing this article, CoinGecko is trading at $19,834.61, down 8.3% over 7 days.
Ether (ETH) also slipped 5.1% on occasion. Today, it sells for $1,453.89.
Even Dogecoin (DOGE) and Shiba Inu (SHIB) have paid the costs of these measures announced by Jerome Powell. They trade at $0.061 and $0.00001197 respectively according to the same cryptocurrency data analytics platform.
It makes perfect sense for investors to panic when they see these numbers. But we must not forget the advice of trading experts who believe that the best solution for thebear runis the HODL.
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