The crypto market was depressing this morning, clearly continuing since May 5 last week.
Bitcoin (BTC) has slipped to a daily low, $ 33,279 just recently back to the $ 33,000 zone, the lowest since January.
At the time of writing, Satoshi Nakamoto’s assets are trading at $ 33,474.27, down more than 3% in 24 hours. Ethereum (ETH) was valued at $ 2,440, down 4.3%.
During the same period, the dumping of altcoins was also hampered to its lowest level:
Avalanche (AVAX): $ 52.58 (3.35%)
Polygon (MATIC): $ 0.9877 (2.55%)
Solana (SOL): $ 76.64 (2.36%)
Terra (LUNA): $ 64.37 (2.26%)
Shiba Inu (SHIB): $ 0.00001864 (1.83%)
XRP: $ 0.576 (0.65%)
Dogecoin (DOGE): $ 0.1249 (1.42%)
However, for observations since last week, ApeCoin (APE) and LUNA recorded the biggest losses with declines of 31.72% and 26.78% respectively.
What is the main cause of the collapse of the price of cryptocurrencies?
Rising interest rates
The Federal Reserve (The Fed) has raised interest rates twice for the year.
For the record, the most recent increase was by 50 basis points, from 0.50% to 1.00%.
This led to the massive liquidation of crypto assets.
In addition to cryptocurrencies, technology stocks that are sensitive to interest rate changes also bear this impact.
At the same time, some altcoins survived with a consolidating increase. For example NEAR Protocol (NEAR) jumped more than 11%, traded at $ 11.40 and Axie Infinity (AXS) also recorded a value of $ 31.13, up almost 10%.
