Bitcoin, ethereum and other major cryptocurrencies have suddenly crashed, wiping around $100 billion from the combined crypto market in mere minutes (and following a serious bitcoin price warning).
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The bitcoin price is down around 5% over the last 24 hours, with the ethereum price seeing a similar decline. Ethereum rivals solana, cardano, and avalanche are all down around 3% while Ripple’s XRP XRP and Terra’s luna are leading the major crypto market lower.
The sudden crash comes amid a technology company-led stock market sell-off in the aftermath of the Federal Reserve’s hawkish 50-basis point interest rate hike.
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“Bitcoin’s struggle is by no means in isolation–the S&P 500 [has fallen] to a new record low for the year,” Sam Kopelman, the U.K. manager for bitcoin and crypto exchange Luno, said in emailed comments and warning bitcoin could “slip back into the previously found $36,000-$37,000 support range.”
However, Kopelman is upbeat about the bitcoin price but less positive about other major coins such as ethereum, XRP, solana, cardano, luna and avalanche.
“Overall, 2022 has generally seen crypto market participants climbing down the risk ladder, selling their smaller coins for blue-chip coins like bitcoin,” said Kopelman.
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The market has had a delayed response to the Federal Reserve’s biggest rate hike since 2000, first spiking on Wednesday’s news and leading market watchers to believe the potentially “bearish event” to have been “priced in.”
“The market clearly priced in this bearish event during the weeks leading up to the FOMC meeting, where we saw significant sell pressure,” Marcus Sotiriou, an analyst at the U.K.-based digital asset broker GlobalBlock, said in emailed comments following the Fed’s decision.
Earlier this week, a veteran trader warned the bitcoin price could fall as low as $28,000, down $10,000 per bitcoin from its current price.