• Sat. May 21st, 2022

Cryptocurrencies in Freefall After Biggest Fed Rate Hike in Two Decades

ByHazel R. Lang

May 8, 2022

On Sunday, Bitcoin saw another round of freefalls, slipping below $35,000 per coin, as the global crypto market saw a massive drop of more than 4.5% in the past 24 hours to reach $1.66 trillion.

All cryptocurrencies were weighed down as central banks around the world tried to control inflation by raising interest rates.

Bitcoin is down more than 20% since the start of this year.

On Sunday, Bitcoin was hovering around $34,400 and Ethereum, which is the second largest cryptocurrency, plunged 4.8% to $2,545.

Dogecoin prices were trading down around 1.2% at $0.12, while Shiba Inu was down more than 4.9% at $0.00001887.

The US Federal Open Market Committee (FOMC) last week voted to hike interest rates 0.5%, marking its biggest upward adjustment in more than two decades.

Federal Reserve Chairman Jerome Powell also raised interest rates to fight inflation.

Since the Federal Reserve announced its intention to start raising interest rates in November last year, the price of Bitcoin has fallen by more than 40%, Cointelegraph reports.

Bitcoin ended April down 17%, making it the worst monthly performance this year.

According to a new report, Bitcoin investors stand to lose up to $545 million this year, for various reasons such as forgetting passwords to their wallets or mistakenly recording their “core phrases”. “.

A seed phrase is a series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet.

Analysts have estimated that at least 20% of all bitcoins are lost, and the majority of these funds are irretrievably lost.

According to CryptoAssetRecovery.com, between $272 million and $545 million worth of Bitcoin will be lost this year.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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