The crypto market is a mix of various different types of tokens and coins. Each of these tokens is distinctive in its own way. However, the market is highly volatile in nature. Every token has different price trajectories and patterns. There are several factors that influence their price movements. The lack of momentum is sometimes triggered by certain global economic factors. The graphs and charts of crypto tokens also impact their market performance.
Bitcoin tops the list of top cryptocurrencies in the market. It is miles ahead of its competitors in terms of valuation, market cap, trading volume, and other such factors. Thus, the market performance of Bitcoin also influences the mood of the overall crypto market.
Since the start of the week, several crypto coins had posted green candles in the market. Many experts anticipated a long-lasting bull trend. However, Bitcoin fell again in the last 24 hours. Bitcoin entered a consolidation phase after shedding around 4% in the last 24 hours. Its current market price is around $43,500. Many analysts believe that this is just a correction phase before the continuation of the bull cycle.
A state of fear surrounds the crypto market
The fall in the price of Bitcoin is accompanied by several other bleeding coins. The likes of SOL, DOT, AVAX, and ADA have shed more than 5% during the last day. The global crypto market cap also shed around 4% and fell to the $2T mark. This indicates that investors are pulling capital out of the market, and it is a concerning sign for the crypto community.
The bleeding stock market is also a major propellant for the downfall of the crypto market. These financial markets took a blow yesterday after the announcement of Federal Reserve Vice Chairman, Lael Brainard. She stated that the committee will continue to tighten its monetary policies. The Federal Reserve is also expected to increase the interest rates in May to counter the rising inflation.
Due to this, the crypto community is dipping into uncertainty and fear. This state of fear might increase with the upcoming meeting of the Federal Open Market Committee (FOMC). The rising global inflation is a major cause of the deteriorating economic situation throughout the world. In addition to this, the current market price are increasing in the Russia-Ukraine war. This might result in more economic sanctions on Russia, and as a result, the global financial markets will also suffer.
