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Bitcoin Below 37k; 7 out of Top 10 Cryptocurrencies Plunge

Tyler Irvin

Summary: Just one day after the crypto and traditional markets soared based on Federal Reserve Chair Jerome Powell’s comment that the U.S. central bank wasn’t likely to raise interest rates by more than 50 basis points (bp) (0.5%) in the future, Bitcoin (BTC) has plummeted $2,332.7 or 5.38%, according to Bitpush Terminal data. As it stands, ...

Just one day after the crypto and traditional markets soared based on Federal Reserve Chair Jerome Powell’s comment that the U.S. central bank wasn’t likely to raise interest rates by more than 50 basis points (bp) (0.5%) in the future, Bitcoin (BTC) has plummeted $2,332.7 or 5.38%, according to Bitpush Terminal data.

As it stands, Bitcoin currently sits at $37,186.84, at the time of writing, which is a number we haven’t seen since the start of the Ukraine and Russia conflict on February 24. It is also the biggest selloff to date since March 4.

That in turn has caused many other cryptocurrencies to drop substantially. Ethereum (ETH) is down 3.16%, Binance Coin (BNB) dropped 2.91%, both Ripple (XRP) and Solana (SOL) are down in the mid two percents, Terra is down 3.03% and Cardano (ADA) is down 4.27%.

That means that seven out of the top 10 cryptocurrencies by market cap are in the red in the last 24 hours. The only green coins in the last 24 hours within the top 10 cryptocurrencies are the stablecoins: Tether (USDT), USD Coin (USDC) and Terra USD (UST). However, these percentages are very minor as the nature of these coins is to remain stable.

In the last 24 hours, we have seen the shape of a rainbow or high plateau, going from a rally to a major collapse as fears mount over Powell’s words. While it sounded good at first, investors and analysts are skeptical we might see an interest rate increase of more than the 50 bp Powell hinted we shouldn’t worry about.

On Thursday, futures on the federal funds are priced in a roughly 75% chance of a 75 bp (0.75%) increase on the interest rate by the Federal Reserve at next month’s policy meeting. In other words, we should expect an increase of more than 50 bp by next month.

In addition, DataTrek Research on Twitter pointed out that the “CME Group’s Fedwatch tool shows Fed Funds are still pricing in 83% odds of a 75 bp hike next month…”