The crypto fraternity is seeing a minor pushback in its momentum. As the market capitalization of the industry falls below its $2 trillion thresholds. Successively, the exact numbers for the market capitalization at the time of publication are $1,951,047,024,103. The numbers are down 3.5% from the previous day. So are the numbers of a number of digital assets from the crypto directory.
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Consequently, flagship cryptocurrency Bitcoin has lost its grip at levels around $44,000 and is currently changing hands at $42,461.42. The price path of the largest altcoin, Ethereum, is no different, as it is trading at $2,834.35. While shedding 4.7% gains from the previous day. Fear has been creeping back into the market as the FED chairman signals an interest rate hike.
Is it a dip in the horizon?
The industry is still largely fragile as panic has been modulating the market’s price action. Consequently, fear and anxiety have been persistent amid ongoing geopolitical tension. Which is evident from the market price charts. The recent update from the FED chairman has caused fear and anxiety among sections of the business.
Federal Reserve Chairman Jerome Powell in a congressional hearing says he sees a suitable rate hike for the month. The President at the meeting told US lawmakers that the Central Bank is on track to raise interest rates this March. That will be for the first time in the last three years. That said, the size of the walk still remains in the mist, which would prevail on March 15.
Meanwhile, the fear and greed index has dropped to fear once again, with a score of 39. That was neutral with a score of 52, the other day. Sections of the fraternity are now anxious about another possible accident. Arriving even before the market settles due to the impacts of geopolitical tension. While the implications would not be extreme, a 25-30% correction could be on the cards.
According to Lunar Crush stats, global metrics are known to have been sailing in strong winds. Where social volume is down 5.6% over the week to 10,347,080, social engagement is down 3.4% to 21,999,185,603. Average sentiment is 62.4%, which is up marginally one 0.2%. Bullish sentiment is down 3.4% at 7,572,060.
Summing up, as mentioned above, the implications, while not drastic, we can expect sentiment to turn negative. Which will eventually be reflected in the price action of digital assets, which could move sideways until the rate of increase is announced. The repercussions could result in another 25-30% correction.
This post Are Crypto Markets Heading for Another 25% Drop in Mid-March?
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