The cryptocurrency market continued its precipitous decline yesterday. Overall, cryptocurrency valuation has dropped to $924 billion and continues to slide. Bitcoin’s price has again fallen below the $20,000 level to $18,913. As a result of this ongoing decline, Ethereum is dangerously close to once again trading at a price lower than $1,300. Price as of this writing: $1308.
The harder #Bitcoin will crash, the more I'll buy!
— Crypto Rover (@rovercrc) September 23, 2022
Cardano has been among the most hit in the recent cryptocurrency market decline. Its increasing trend has ended and is now down almost 2%, to $0.446. The price of Terra Classic (LUNC) has plummeted even more in the last day, dropping by about 16%.
LUNC has lost nearly 30% in the previous week as a stock. Solana’s share price has fallen by more than 3 percent in the previous day to $32.53. DOGE, meanwhile, has dropped by about 3% and is now trading at $0.06157.
The Crash of Cryptocurrency: Why?
In contrast to the extraordinary strength of the US dollar, the cryptocurrency market is tumbling. The DXY, which measures the dollar’s value against a basket of other currencies, rose by an additional 0.64 percentage points, closing at 113.92. Consequently, bond rates in the United States rose, and the stock market fell.
The S&P 500 and the NASDAQ dropped by 1.72% and 1.6%, respectively. There is a robust relationship between the cryptocurrency market and the larger economy. Specifically, it is highly associated with the technology-focused NASDAQ 100.
Due to the dollar’s strength, other global currencies, such as the British pound, are collapsing. In addition, it is contributing to the decline of risky asset prices, such as the cryptocurrency market.
While everything is going on, the Fed has maintained its aggressive posture toward inflation. The most significant cause for the dollar’s gain is quantitative tightening. As the Fed continues to downplay the economic downturn, preparations are being made for a global recession.