The crypto fraternity is experiencing a minor pullback in its momentum. As the industry’s market capitalization sees a fall below its $2 Trillion thresholds. Successively, the precise numbers of the market cap at the time of press are $1,951,047,024,103. The numbers are down 3.5% over the previous day. So are the numbers of a number of digital assets from the crypto directory.
Consequently, the star crypto Bitcoin has lost its grip at levels around $44,000, and is currently changing hands at $42,461.42. The price trajectory of the largest altcoin Ethereum is no different, as it trades at $2,834.35. Whilst shedding off 4.7% in gains over the previous day. Fear has been creeping back into the market, as the FED Chairman signals at a hike in interest rates.
Is A Plunge On The Horizon?
The industry is still fragile to a notable extent, as the panic has been modulating the price action of the market. Consequently, the fear and anxiety have been persistent amidst the ongoing geopolitical tensity. Which is evident on the market’s price charts. The recent update coming in from the FED chairman has escorted fear and anxiety amongst sections in the business.
Federal Reserve Chairman, Jerome Powell in a congress hearing affirms that he sees a rate hike to be appropriate for the month. The Chairman in the meeting said to the U.S lawmakers that the Central Bank is on track to raise the interest rates this March. Which will be for the first time in the past three years. That said, the size of the hike still remains in the mist, which would prevail on the 15th of March.
In the interim, the fear and greed index has lowered down to fear yet again, at a score of 39. Which was neutral at a score of 52, just the other day. Sections of the fraternity are now anxious over another possible crash. Coming even before the market settles from the impacts of geopolitical tensity. While the implications would not be extreme, a 25-30% correction could be on cards.
According to statistics from Lunar Crush, it is learned that the global metrics have been sailing through rough winds. Wherein the social volume is down 5.6% over the week at 10,347,080, social engagement is down 3.4% at 21,999,185,603. The average sentiment is 62.4%, which has marginally risen 0.2%. The bullish sentiments are down 3.4% at 7,572,060.
Summing up, as aforesaid the implications although not drastic we can expect the sentiments going negative. Which will eventually reflect on the price action of digital assets, that could move sideways until the hike rate is announced. The repercussions could result in another 25-30% correction.
