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Today, most cryptocurrency markets have dropped to a new low for this year. The global crypto market barrier has downsized to $1.02 trillion from yesterday’s record $1.10 trillion. However, the global cryptocurrency market capital has declined to $1 trillion in 2022. Now, every top coin has dropped half or less than its all-time peak.

The sudden move for the crypto crash happened after investors’ huge sell-off following the increasing fears of inflation. Most investors are now staying away from risky assets and considerably impacting the stock markets. Keep in mind that Bitcoin is the major and most famous cryptocurrency. It has now dropped to $25,586 and all altcoins including Ethereum are also decreasing in their value.

Ethereum dropped to its lowest level since April 2021

Moreover, Ethereum has declined to its ever-lowest level in the last 14 months. It was currently trading at $1350. Solana has also dropped its value by at least 30% and is now fluctuating around $29. Most experts believe the crypto price decline has indicated a dropping risk taste of investors. They are obviously more careful of risky assets.

Crypto is determined as one of the most variable kinds of stuff from the investment point of view with all its instability. CEO and Co-founder of crypto investment platform Mudrex, Edul Patel issued a statement. He said the crypto market is experiencing significant pressure from the Federal Reserve. It is noteworthy that Federal Reserves is increasing the interest rates to fight inflation for the last couple of months.

Ethereum and Bitcoin experienced a downfall last week

Patel also said Ethereum, Bitcoin, and many cryptocurrencies have experienced a downfall over the weekend. The major reason was supposedly the huge sell-off following data showing the inflation in the US hit 40 years high. Investors were in a panic as the number of cryptos experienced dropped since Friday trading. Ethereum and Bitcoin both declined around 7% and currently trading at US$1,300 and US$25,000 respectively.

Most experts believe the slumping trend is expected to continue in a couple of weeks. They currently have an added pressure of possible barriers, but altcoins have typically disappointed Bitcoin. An expert said there is only a fewer number of altcoins to survive in the current market environment. CEO of crypto exchange BuyUcoin, Shivam Thakral also issued a statement.

Massive pressure on the Crypto Market

Thakral said the increasing prices of food, energy, and gas have put immense pressure on the crypto market. Moreover, Ethereum and Bitcoin have witnessed a double-digit downfall in the past 24 hours. Most financial markets around the world have experienced a sharp decline after the consumer price index predicted the highest inflation.

Moreover, Thakral added that the crypto market is supposed to remain bumpy in the coming weeks. Most countries around the world are continuously reporting higher inflation rates. The recent decline in crypto prices enabled investors to buy crypto at 2021 prices. He added that the seasoned investors will supposedly get benefits from the decline.

Bitcoin dropped to its lowest level in the last 5 months

Analysts at WazirX Trade Desk said Bitcoin has experienced another considerable correction. It fell to its lowest level in the last 5 months and dropped around 10% and declined to nearly $25,000. However, the Dollar Index (DXY) has shown a 6-month high. It gained 2% on Sunday, leading to a decline in the crypto and stock markets.

Meanwhile, the BTC trend has declined below the long-fabricated triangle strategy in the daily time frame. It is noteworthy that instant and major support is expected at $24 thousand. The RSI also decreased below 30 when Bitcoin joined the oversold zone. Ethereum declined against Bitcoin by around 11% when the Dominance of Bitcoin marked above 48% for the first time in a year.