The cryptomarkt turns red after a considerable correction. In 24 hours, around 68 billion dollars has evaporated, so the total market cap dropped to 3.88 trillion dollars.
The pressure is mainly due to nervousness around the speech of FED chairman Jerome Powell and signals of vulnerability due to rising leverage in the market.
Tension around Jerome Powell speech
Investors look tense ahead to Powell’s speech on August 22 during the Jackson Hole symposium. His words can give direction to the future monetary policy of the Federal Reserve (FED).
Although the market is already based on an interest rate reduction in September, clear confirmation is missing. Powell struggles with the right balance in his communication due to persistent inflation pressure and a weak labor market. This increases the chance of competitive price movements after his speech.
Rising leverage makes cryptomarkt vulnerable
According to Galaxy Digital, rising leverage is also an important risk factor. The number of loans covered by crypto rose by 27 percent in the past quarter to more than 53 billion dollars, the highest level since the beginning of 2022.
At the time, that also heralded the end of the bull market. Last week alone, the fluctuations caused more than 1 billion dollars in liquidations.
Bitcoin is staggering, Chainlink rises
Bitcoin (BTC) dropped by 2.2 percent to 115,345 dollars in the last day and remains narrowly above the support zone of $ 115,000. Ethereum (ETH) and XRP both lost 4.5 percent and are now at $ 4,255 and $ 2.97 respectively. For XRP, that means a breakthrough under the psychological limit of 3 dollars.
Strikingly enough, Chainlink (link) is gaining ground. After a short revival of up to 26.19 dollars this weekend, the currency now notes $ 24.5. That is still a plus of 1.5 percent in the last 24 hours.
The rising interest in Link is due to news about a collaboration with Intercontinental Exchange (ICE), one of the largest players in the financial sector. Thanks to that deal, the Oracles from Chainlink are expanded with data from the traditional markets. Investors see this as an important step in the adoption of the currency.
Source: https://newsbit.nl/waarom-crashen-de-crypto-koersen-vandaag/
