Ethereum crashes with other major cryptos
Ether prices fell to their lowest in more than three months on Thursday, plunging below $3,200. The recent crypto crash has affected many other major cryptos including Bitcoin, Solana, Cardano, XRP, and Dogecoin. Ether also fell against Bitcoin, dropping to 0.076639 on Friday.
Why are cryptos suddenly crashing? In an effort to deal with rising inflation, the Federal Reserve’s minutes revealed on Wednesday that a tighter monetary policy is on the cards in 2022. Expectations for decreased monetary policy support and higher interest rates instantly hit global risk assets, such as stocks and currencies.
Will Ether plunge to $3000 or even lower in the coming months? 2021 was a great year for Ethereum, which hit record highs. Moreover, let’s not forget that the major metaverse tokens like SAND and MANA all run on the Ethereum blockchain. This is a good sign for the second-largest cryptocurrency. However, the Federal Reserve’s intention to normalise interest rates could potentially challenge cryptocurrency prices even more in the near future.
Why are cryptos suddenly crashing? In an effort to deal with rising inflation, the Federal Reserve’s minutes revealed on Wednesday that a tighter monetary policy is on the cards in 2022. Expectations for decreased monetary policy support and higher interest rates instantly hit global risk assets, such as stocks and currencies.
Will Ether plunge to $3000 or even lower in the coming months? 2021 was a great year for Ethereum, which hit record highs. Moreover, let’s not forget that the major metaverse tokens like SAND and MANA all run on the Ethereum blockchain. This is a good sign for the second-largest cryptocurrency. However, the Federal Reserve’s intention to normalise interest rates could potentially challenge cryptocurrency prices even more in the near future.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.