- Bitcoin dropped about 5% to a three-month low of $18,387.
- Ether has been on a downward spiral ever since the Merge took place.
- Investors are preparing for volatility due to the Fed interest rate hike.
On Monday, the cryptocurrency market is deeper in the red due to regulatory concerns and a general investor reluctance to invest in risky assets due to impending interest rate increases.
By market value, Bitcoin, the most valuable cryptocurrency, dropped about 5% to a three-month low of $18,387.
According to the estimates by CoinGecko, the global crypto market cap today fell below $1 trillion, falling more than 7.8% in the last 24 hours to $938 billion.
Ether, the second most valuable cryptocurrency, fell 3% to a two-month low of $1,285 and is now down more than 10% in the last 24 hours.
While it was largely expected that ETH price would see notable gains on the board following the Merge, Ether has been on a downward spiral since the Ethereum Merge took place. The Ethereum Classic (ETC) token turned out to be the biggest loser in the last 24 hours, with a loss of over 17%.
This market crash could be due to the growing fear of an Ethereum “fork” and tightening regulations globally. Last week, U.S. Securities and Exchange Commission Chairman Gary Gensler hinted that the new structure might attract additional regulation.
The Securities and Exchange Commission (SEC) is paying close attention to proof-of-stake tokens and any new developments in the crypto world. According to the Wall Street Journal, SEC Chair Gary Gensler stated that proof-of-stake cryptos could be investment contracts that subject them to securities regulations.
Investors are preparing for volatility due to the Federal Reserve’s anticipated jumbo interest-rate hike this week to combat price pressures. Meanwhile, BNB is down 6.53% in the last 24 hours, while Solana is down 7.66%. Today’s dogecoin price was about 7% lower at $0.05, while Shiba Inu fell more than 9% to $0.000011. Other crypto prices have also dropped in the last 24 hours, including XRP, Uniswap, Polygon, and Avalanche.
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