Several cryptocurrencies, including Bitcoin and others, have fallen sharply, losing the crypto market $200 billion in value.
According to a Sunday report from Forbes, the price of Bitcoin dropped to under $35,000, its lowest price since July of last year. The drop comes in the face of the biggest Federal Reserve rate hike in years.
Additionally, other top ten cryptocurrencies, including Ethereum, BNB, XRP, Solana, LUNA, Cardano, and Avalanche, are all struggling, falling to lows not seen since January.
Forbes reports that the Bitcoin Fear and Green Index has dipped into the “extreme fear” category amidst the fall.
And it’s not just crypto markets taking the hit; this week, the Nasdaq recorded its longest weekly losing streak since 2012.
Tammy Da Costa, an analyst at DailyFX, writes that “the correlation between cryptocurrency and equities has been discussed fairly extensively after bitcoin and the tech-heavy Nasdaq displayed a higher positive correlation than was initially expected,” but notes that predictions made before Russia invaded Ukraine were made under the assumption that once interest rates rise, supply and demand would meet.
However, she adds that “over the past week, fundamentals have included interest rate expectations and nobody can ignore the ongoing war which continues to place pressure on supply constraints, particularly for commodities.”