Bitcoin and other cryptocurrencies are in free fall after the Federal Reserve warned that inflation might be on the horizon. This has caused many investors to cash out of their positions, leading to a sell-off that has driven prices down by as much as 30%. Ethereum, Binance Coin, Solana, Cardano and XRP are all down sharply, with Bitcoin leading the way lower.
FED warning sparks sell-off
A sharp sell-off has gripped the cryptocurrency market after the Federal Reserve warned that inflation could pick up in the months ahead.
Ethereum, Binance Coin, Solana, Cardano and XRP were among the worst performers, losing 10% or more of their value in a matter of hours.
The Fed’s comments sent shockwaves through the crypto market, which has been on a tear in recent weeks. Bitcoin, for instance, had surged to a new all-time high just days ago.
But with the Fed now warning of higher inflation down the road, investors appear to be reconsidering their allocations to riskier assets like cryptocurrencies.
Ethereum, BNB, Solana, Cardano and XRP crash
Ethereum, BNB, Solana, Cardano and XRP have all crashed following a stark warning from the Federal Reserve.
The Fed warned that inflation could rise sharply this year, which sent shockwaves through the financial markets.
Bitcoin and other cryptocurrencies were not immune to the sell-off, with Ethereum, BNB, Solana, Cardano and XRP all tumbling in value.
The sell-off continued on Wednesday morning, with Ethereum, BNB, Solana, Cardano and XRP all down by double-digit percentages.
This is a developing story and we will update as more information becomes available.
The 300 billion bitcoin and crypto price crash
The cryptocurrency market is in free fall after the Federal Reserve warned that inflation could pick up in the near future. Bitcoin, ethereum, Binance Coin, Solana, Cardano and XR
Pare all down by double-digits. This comes after a strong start to the year for cryptocurrencies. The total market capitalization of all digital assets is now 300 billion, down from its peak of $2 trillion in early April.
The Fed’s comments have spooked investors who were already skittish about the regulatory environment for cryptocurrencies. In the past month, there have been a number of high-profile crackdowns on exchanges and initial coin offerings by Chinese and U.S. authorities.
The sell-off accelerated on Wednesday after China’s central bank said it would crack down on bitcoin mining and trading activities.