As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed my fair share of market turbulence and downturns. However, the recent sell-off in the cryptocurrency market is truly a sight to behold – a rollercoaster ride that leaves even the most experienced investors clutching their seats.
In just the past day, the value of the cryptocurrency market has dropped by more than $200 billion, with a further decline of approximately $600 billion in the last week. This downward trend is attributed to multiple factors such as the Federal Reserve reducing interest rates by 0.25% and Jerome Powell hinting that fewer rate cuts might be expected in the coming year.
Powell’s remarks led to a drop in investor confidence, causing a fall in risky assets across various markets. Since his comments, the S&P 500 has dropped approximately 3.2%, while the Nasdaq also experienced a comparable decrease. The market downturn continued the Dow Jones Industrial Average’s slide after nine consecutive losing days, marking its longest stretch of daily losses since 1974.
In the world of cryptocurrencies, a recent sell-off caused bitcoin‘s value to fall over 9%, dropping it below $93,000. At the time this was written, Ethereum‘s ether also dipped by approximately 15.6% to $3,120. Notable altcoins like Solana, DOGE, ADA, and BNB experienced declines ranging from 11.6% to as much as 27%.
Yesterday’s market sell-off resulted in a record-breaking $671 million withdrawal from spot bitcoin exchange-traded funds, marking the largest single-day loss since these funds began seeing inflows 15 days ago. The biggest pullout occurred with Fidelity’s FBTC, which experienced a withdrawal of $206.8 million, while Grayscale’s Bitcoin Mini Trust and ARKB each saw outflows totaling $188.6 million and $108.4 million respectively.
The market is experiencing a dip due to anticipation surrounding the release of the PCE Index for November, a significant indicator of inflation that may impact future interest rate adjustments.
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2024-12-20 15:24