Sales in the cryptocurrency market continued on Monday, with most signals falling sharply over exchanges. Both Bitcoin and Ethereum broke through psychological barriers, with Bitcoin falling below $ 40,000 per token and Ethereum below $ 3,000 per token this morning.
Currently, both signals are down, although losses have been limited to 0.6% and 2.5%, respectively, for Bitcoin and Ethereum over the past 24 hours.
In particular, bitcoin is outperforming the entire crypto market today, which is much deeper in the overall red. The crypto market as a whole has lost 1.7% in the past 24 hours since noon Monday, also falling below the $ 2 trillion psychological threshold in terms of market capitalization.
Once again, meme tokens like Dogecoin are ahead in terms of loss today. Dogecoin is currently down 4.4% over the last 24 hours.
Investors seem to continue to move away from risky investments linked to growth in favor of more protective asset classes today. In the stock market, the Nasdaq is once again leading the losses among the major indices as investors move to safe havens. The guidance given by the Federal Reserve through its meeting minutes published last week continues to worry investors looking for growth, who now expect rate hikes to be much larger and faster than expected.
In the world of cryptocurrency, the levels “ great fear they are rated according to various dimensions of investor sentiment. For meme tokens like Dogecoin, which rely on positive attitude and investor interest, the current environment does not help the parabolic growth trends that many investors initially expected in 2022.
This macroeconomic environment is likely to test the cryptocurrency market. The price action of the major cryptocurrencies in the coming months will determine whether or not the market is currently in bubble territory. We have already seen sharp declines, and this could be another test of the long – term resistance of these digital currencies.
For investors in more secure tokens such as bitcoin, it is often called “ digital gold“, The relative strength that investors are seeing again today can be seen as a positive. That said, apart from some niche signals, the cryptocurrency market is moving again in a high correlation as capital flows continue out of the crypto world.