Bitcoin and crypto prices plummet to $ 300 billion after Stark Fed warning – Ethereum, BNB, Solana, Cardano and XRP plummet – .

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Bitcoin and crypto prices plummet to $ 300 billion after Stark Fed warning – Ethereum, BNB, Solana, Cardano and XRP plummet – .


Bitcoin and cryptocurrency prices have fallen sharply, wiping out an estimated $ 300 billion in value from the combined crypto market in just two days.
The price of bitcoin has fallen to around $ 51,000 per bitcoin after trading around $ 69,000 just a few weeks ago, down almost 30%. The latest downward movement saw other major cryptocurrencies including Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP, each losing nearly 10% in just 24 hours.

The sudden sell-off of bitcoin and crypto, accompanied by severe stock market declines, follows a warning from famed investor Louis Navellier that the much-anticipated Federal Reserve ‘dip’ could burst the bitcoin and crypto bubble .

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“The Fed is shrinking, and that should create a correction in risky assets, of which bitcoin is a part,” Navellier wrote in comments first reported by Initiated. “The more the Fed goes down, the more volatility we should see in stocks and bonds – and yes, bitcoin too. “

Bitcoin and especially small cryptocurrencies remain very volatile compared to traditional markets, with like Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP often bouncing double-digit percentages in just a few hours.

Navellier warned that the price of bitcoin could drop below $ 10,000 per bitcoin, a drop of more than 80% from its all-time high of nearly $ 70,000 last month. The price of bitcoin has seen similar declines in the past, although bullish bitcoin and crypto investors remain confident that the price of bitcoin will rise well in the years to come.

“I would take a drop below $ 46,000 (the 200-day moving average) to be a yellow flag and a drop below the spring low of $ 28,500 to be a massive double top completed which indicates a downward trend.” below $ 10,000, which would also correspond to many of the multiple reductions of 80% and more in its history, ”wrote Navellier.

Navellier, who has been monitoring markets and selecting stocks since the 1990s, pointed to the huge advertising spend by crypto companies as evidence of the mania in the bitcoin and crypto market. Trading platforms such as Crypto.com and FTX have raised eyebrows with multi-million dollar campaigns and sponsorship deals in recent months.

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The bitcoin price spike – pushing the cryptocurrency from a low of $ 4,000 in March 2020 to a high of around $ 69,000 last month – began last year at least in part because of the Massive stimulus measures taken by the US Federal Reserve and other central banks around the world in response to the economic blow from the Covid-19 pandemic and the containment measures put in place to contain it.

The bitcoin rally pushed the combined market capitalization of cryptocurrencies from around $ 500 billion at the same time last year to highs of $ 3 trillion last month. Much of those gains come from huge price increases in small cryptocurrencies, with Ethereum and its rivals BNB, solana, Binance’s cardano far outpacing bitcoin over the past 12 months.

The Fed is now starting to “scale back” its losing economic policy in the wake of a sharp rise in inflation and a nearly fully recovered labor market. As November’s employment data fell below expectations, the unemployment rate fell to 4.2% from 4.6% in October, its lowest level in more than a year.

“Rarely has a headline number been so misleading,” Jay Mawji, managing director of global liquidity provider IX Prime, wrote in an email comment. “Of course, the 210,000 new jobs created in November were a big miss. But lucid market watchers see it as a distraction rather than a disappointment. Dig deeper into the numbers and this jobs report reveals a robust job market. “

“In an odd twist, the weaker growth coupled with the potential supply chain problems of the new omicron variant may actually cause the Fed to hike rates more aggressively than previously thought, all in an effort to fight rising inflation, ”Jay Pestrichelli, CEO of Florida-based investment firm Zega Financial, said Forbes.

Billionaire crypto investor Mike Novogratz last week warned that Fed Chairman Jerome Powell could trigger a collapse in the bitcoin and crypto market in 2022 as he acts to curb soaring inflation that peaked in 30 years.

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