Major Coins Lose Footing- Crypto Industry Might Set On An Unpleasant Journey If…
While the economic and political institutions all over the world are trying to make sense of the Russia-Ukraine crisis, the crypto industry has been experiencing many highs and lows lately. Ukraine took it to Twitter to ask users to donate in crypto assets to support the war-stricken country, and as the global public was supportive of Ukraine, the country received donations in millions.
While this might underline the potential of the crypto industry, it faced a new all-time low Monday evening. So much so, that the market capitalization rate reportedly fell by 1.95%.
Commenting on why this is bad news, the chairman of the Federal Reserve, which is the central bank of the USA, Jerome Powell stated that the institution must take rigorous efforts to hype the performance of the industry in order to prevent severe inflation. The USA is a capitalist country, is worried about the strong labor market and the chances of inflation shooting upwards. After this comment by Powell, Treasury yields reportedly rose by 13.4 points.
Industry experts are of the opinion that despite the comment by Powell, Bitcoin for one is facing the market pretty steadily. But, considering the performance of other coins like Ethereum, Dogecoin, investors might bid adieu to their digital assets. It has been speculated that if the $40,000 level is crossed, prices of all coins might have an unpleasant future.
Santiment, a platform that analyses the financial market reported that Ethereum was holding up relatively strongly, standing opposite of Bitcoin. Ethereum is the second-largest coin when seen in terms of market capitalization. Though it saw a good hype in the early days of February, now it has been witnessing a huge outflow and has started to lose its footing, reported Santiment. With the prices now dropping, this trend might help loosen the selling momentum, according to Santiment.