On Friday morning, the price of several popular cryptocurrencies suddenly plummeted down. This triggered a severe fall in Bitcoin’s price, sending the cryptocurrency to its lowest value in over three weeks.
According to several reports, Bitcoin went from $22,738 to below $21,500 on early Friday morning. This fall in price came after Bitcoin had finally crossed the $25,000 mark for the first time since June. And since the prices of other cryptos are influenced by Bitcoin’s performance, their prices went down too.
The second most popular and valuable crypto, Ethereum or Ether, went from $1,808 to $1,728 at the same time when Bitcoin’s price went spiraling down. It remained stable for a while and then again, went down to $1638. This, in turn, triggered a fall in the prices of Solana and Cardano.
Overall, last weekend had been pretty hard for the crypto industry. And Monday isn’t looking promising either. At the time of writing this piece, Bitcoin’s price is hovering around $21,138. On the other hand, Ether has fallen down even more and is currently valued at around $1,562.
The crypto market expert analyst, Simon Peters, believes that this sudden crypto market sell-off is the result of the minutes that were released from the Federal Reserve’s July meeting. “Since the release of the July Fed meeting minutes the US equity markets have pulled back. The major takeaway is that the Fed likely won’t be finished with rate hikes until inflation is tamed across the board, with no guidance offered on future rate increases either.”
He further added, “ in recent months with the tight correlation between US equities and crypto it suspects this has filtered through to crypto markets, and it’s why we are seeing the sell-off.
While this might be a possibility, the main cause of this sudden drop in the prices of almost every cryptocurrency is still unclear. However, it has sent the investors into a state of panic and confusion. Almost the entire crypto market is trading in red, and we are most likely headed towards a long Crypto Winter.