Prices of Bitcoin (BTC) dropped the most in almost a month as the US Federal Reserve increased interest rates on Wednesday. According to reports, $100 million worth of BTC was liquidated within one hour of the interest rate hike announcement.
BTC fell as much as 8.4 per cent to $36,410.49, as of this morning, the biggest intraday drop since April 11, 2022.
The global crypto market cap decreased by 7.46 per cent to $1.67 trillion at 8.50 am. However, the global crypto volume was up by 14.26 per cent to $115.05 billion, as per Coinmarketcap data.
Apart from BTC, Ethereum (ETH) was trading lower by 6.8 per cent at $2,743.84, according to Coinmarketcap data.
“The crypto market has taken a plunge, reacting to the reality of higher interest rates and a shaking global economy. Market leader Bitcoin is down by 8.4 per cent and Ether by nearly 7 per cent. Other major altcoins and crypto tokens are in the red. The equity market fell along with the crypto market, as the market does not seem to be ready to fight inflation. Overall, similar retracements and rebounds may continue this week,” says Gaurav Dahake, CEO and founder, Bitbns.
Among other major coins, Cardano (ADA) was down by 11.64 per cent at $0.7856, Algorand (ALGO) was trading with a loss of 8.31 per cent at $0.6667, Binance Coin (BNB) was down by 6.6 per cent at $377.21, Solana (SOL) was also trading with a loss of 11.66 per cent at $83.89, and Polkadot (DOT) fell by 11.66 per cent at $14.44.
Today’s top gainer was Fairy Forest NFT (FFN), which was up by 2328.88 per cent at $0.001744. The top loser was TABI (TABI), which was down by 90.73 per cent at $0.007674.
Meme Coin And DeFi Prices
Dogecoin (DOGE) was down by 6.53 per cent at $0.1279. Its volume to market cap ratio stands at 0.07081. Rival Shiba Inu (SHIB) was down by 7.14 per cent at $0.00002016.
Dogelon Mars (ELON) lost 7.99 per cent to trade at $0.0000008675, Floki Inu (FLOKI) also lost 15.24 per cent at $0.00001432, and Samoyed Coin (SAMO) was down by 11.09 cent at $0.01284.
In the DeFi segment, YFI (yearn.finance) was down by 6.64 per cent at $17,169.53 Terra (LUNA) was trading with a loss of 7.21 per cent at $80.85. Avalanche (AVAX) too lost 15.03 per cent at $58.28, Uniswap (UNI) was also down by 8.39 per cent to trade at $7.29, and Aave (AAVE) too was down by 12.53 per cent to trade at $140.92.
At the recent Federal Open Market Committee (FOMC) meeting, Federal Reserve Chairman Jerome Powell announced the biggest single interest rate hike of 0.5 per cent since May 2000. He also said that interest rates will be further hiked by 0.5 per cent later this year. Following this announcement, Bitcoin saw huge selling pressure, with as much as $100 million being sold within one hour, reported Cryptopotato.
In other news, the state of Hawaii has passed a bill to the state senate demanding a task force for cryptocurrency and blockchain regulation. Hawaii’s Commerce and Consumer Protection (CPN) and Ways and Means (WAM) committees have unanimously voted in favour of this new task force for regulating cryptocurrency and blockchain products like Web 3.0. Click here to know more about Web 3.0 applications.
Legislative members Donovan Dela Cruz and Roz Baker wrote a letter addressing Ron Kouchi, President, Hawaii State Senate, in support of a Crypto and Blockchain Task Force. “The task force shall review data and other aspects of the blockchain and cryptocurrency industry throughout the country, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors, to be regulated within the jurisdiction and purview of the Department of Commerce and Consumer Affairs’ Division of Financial Institutions.”