Cryptos Plunge Ahead Of Inflation Reading
Cryptocurrencies declined ahead of the release of the inflation readings from the U.S. on Tuesday. Markets are expecting the Annual CPI for the month of March to increase to 8.4 percent, from the level of 7.9 percent in the month of February. The red-hot inflation is feared to goad the Fed into a tighter monetary policy regime.
The increase in the interest rates by the Fed is widely feared to increase the opportunity cost of holding non-interest-bearing assets like cryptocurrencies. Overall crypto market capitalization has fallen close to 5 percent to $1.88 trillion, versus $2 trillion a day ago.
The only cryptocurrencies that have bucked the trend meaningfully are 61st ranked Zilliqa (ZIL), which has gained close to 3 percent, 64th ranked STEPN (GMT) which has rallied more than 9 percent and 96th ranked Kyber Network Crystal v2 (KNC) which has surged more than 9 percent.
Bitcoin is currently trading near the 24-hour low of $40,903.47. BTC has shed more than 4 percent on an overnight basis and 11 percent on a weekly basis. Bitcoin currently dominates 41.5 percent of the overall crypto market.
Ethereum is currently trading at $3033.22, down more than 6 percent on an overnight basis and more than 12 percent on a weekly basis. ETH dropped to as much as $3028 in the past 24 hours. Ethereum currently dominates 19.5 percent of the overall crypto market.
Stablecoins dominate 8.98 percent of the overall crypto market, with an aggregate market cap of $186.4 billion. 3rd ranked Tether (USDT) tops the category with a market capitalization of $82.6 billion. USD Coin (USDC) ranked 5th overall is the second most valuable stablecoin, with a market capitalization of $50.9 billion.
4th ranked BNB(BNB) dropped more than 4 percent in the past 24 hours and more than 9 percent on a weekly basis. Other Centralized Exchange cryptos like 18th ranked Cronos (CRO) and 26th ranked FTX Token (FTT) are down more than 6 percent on an overnight basis. Market capitalization of the Centralized Exchange related cryptocurrencies is currently at $102.7 billion, commanding a dominance of 4.95 percent.
6th ranked XRP(XRP) dropped more than 6 percent. The weekly loss on the crypto is more than 14 percent. Other Medium of Exchange cryptos like 11th ranked Dogecoin (DOGE) dropped more than 5 percent whereas 16th ranked Wrapped Bitcoin (WBTC) shed more than 3 percent.
7th ranked Solana (SOL) is down close to 7 percent. Other Proof of Stake cryptos like 8th ranked Cardano (ADA) and 30th ranked Algorand (ALGO) lost close to 8 percent in the past 24 hours.
9th ranked Terra (LUNA) has declined 6.6 percent whereas 10th ranked Avalanche (AVAX) has fallen 9.8 percent.
The expected surge in inflation in the U.S. and the feared urgency in the Fed’s inflation combat strategies has spooked investors across asset classes, albeit in varied dimensions.
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