The rather negative news on Wednesday yesterday must have surprised investors when most of the Wall Street giants were reported to be reducing their workforce in preparation for the coming recession.
The drastic announcement sent shockwaves through the cryptocurrency market as Wall Street traders rushed to sell their holdings of stocks or digital assets.
Among the affected digital assets is Bitcoin (BTC) with a 1.2% decrease in the price zone of $16,836 in the last 24 hours.
While Ethereum (ETH) was down 2% at $1,299 where it has plunged 74% from its all-time high of $4,878.
Apart from that, the biggest memecoin Dogecoin (DOGE) was also one of the most impacted cryptos with a 4.2% drop in the last 24 hours at the $0.095 price level while the Nasdaq 100 and S&P 500 also made losses.
Through observation, the crypto market now always follows the movements of the United States (US) equity, when the increase in interest rates by the Federal Reserve (Fed) to control inflation has reacted to the price of digital assets.
This is due to investors selling their risky assets such as tech stocks and BTC as they think holding the US dollar is safer for now.
But it should also be noted that the Terra crisis is also the cause of the entire crypto market including BTC and ETH experiencing a drastic fall.
In fact, the recent fall of FTX has made investors reluctant to invest in crypto as they fear it will bring a huge amount of losses.
