Stock Sell-off, Dominant Dollar And Fed’s Ferocity Drag Cryptos

The digital assets market place more or less mirrored the global rout in stock markets and commodity markets, as renewed fears of the Chinese lockdowns disrupting the supply chains and derailing the global economic recovery rattled investors. The feared ferocity in the Fed’s interest rate trajectory lifted the Dollar Index (DXY) to a fresh 2-year high, depressing the dollar denominated crypto prices.

A sea of red descended on the stock markets across Asia and Europe, triggered by the more than 5 percent drop in Shanghai Composite and Shenzen Component indexes. Wall Street is also currently trading with losses.

Gold has dropped below the psychological $1900 mark and is currently trading at $1899 per troy ounce. Crude Oil Futures too are trading almost 5 percent lower as the commodity markets weigh the impact of slackening oil demand in the aftermath of the resurgence of pandemic in China.

DXY is currently at 101.64, after rising earlier to a 2-year high of 101.74.
Cryptocurrency market capitalization dropped to $1.80 trillion, shedding almost 2.24 percent on an overnight basis.

Bitcoin ranged between $38,338.38 and $39,845.92 and is currently hovering near $38,800, at an overnight decline of 2 percent. Bitcoin tumbled to the $38,300 level after a gap of almost six weeks.

Ethereum has suffered a larger loss of 2.8 percent in the past 24 hours and is currently trading at $2,858.55. ETH ranged between $2,804.51 and $2,961.88 in the past 24 hours, amidst an anxious wait for Ethereum’s transition from Proof of Work to Proof of Stake consensus.

Bucking the trend, 11th ranked Dogecoin (DOGE) has rallied 4 percent in the past 24 hours amidst euphoria and expectations over the outcome of Musk-Twitter negotiations. The success of the Proof of Work cryptocurrency tagged to the Medium of Exchange, Payments and Meme categories has been closely intertwined with Musk’s passion and patronage. Meme category market capitalization has meanwhile surged around 1.3 percent to $32 billion.

Among the top 15 cryptos, 4th ranked BNB(BNB) is down 2.3 percent, 6th ranked Solana (SOL) has shed almost 4 percent, 7th ranked XRP(XRP) is lower by 5.5 percent, 8th ranked Terra (LUNA) has declined less than 1 percent, 9th ranked Cardano (ADA) and 10th ranked Avalanche (AVAX) have dropped close to 4 percent, 14th ranked Polkadot (DOT) is trailing by 6 percent and 15th ranked Shiba Inu (SHIB) has suffered a more than 2 percent loss in the past 24 hours.

29th ranked Apecoin (APE), the governance token of the Bored Ape Yacht Club (BAYC) has gained close to 5 percent as the ‘Otherside’ metaverse gears for launch on April, 30. The Metaverse market cap is however down 3 percent at $27.94 billion.

The Fed has till date, raised interest rates by a quarter percent only. However, it has been able to raise an alarm on future interest rate increases and the imminent balance sheet runoff. Markets have responded to the lingering anxiety with a sharp capitulation. Crypto markets are no exception.

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