Following the publication of The Federal Reserve (Fed) minutes, markets declined significantly, with the NASDAQ falling 3.34 percent, its largest drop in 11 months.
The cryptocurrency industry is witnessing higher volatility, with several assets declining in value and a large amount of money flowing out of the broader market.
According to Coinglass, the aggregate worth of crypto futures liquidated has passed $530 million in recent days, as Bitcoin fell even further, from $43,000 to $41,695.
The selloff on Wednesday has been attributed to traders’ bearish expectations for the market following minutes from the FED’s December meeting, which revealed that officials had decided to cut back the swollen $8.3 trillion balance sheet before a possible interest rate rise in March.
The coin’s greed and fear levels have decreased to “extreme fear,” which is exacerbated by a variety of circumstances, including the Omicron strain and regulatory headwinds.
It’s important to remember that the volatility may swing both ways, despite it’s temporary price action. Bitcoin may be performing poorly now, but it was one of the best-performing assets in all of 2021 with a 60% increase in value.
Several experts believe that the price movement is a short-term setback and they anticipate that Bitcoin’s value will rise significantly in the future.