According to the latest data, Bitcoin (BTC) is repeating its price action from May with its last drop. Cryptocurrency investors woke up this morning with a double-digit drop.
Why are Bitcoin and SHIB crashing?
Just as investors thought the markets were in recovery mode, the markets did a reality check. Cryptocurrency market is crashing today as leading cryptos drop to double digits. There is still fear and panic as most cryptocurrencies drop the gains they made last week. Crypto markets are constantly trading one step forward and two steps back in 2022. Today’s collapse is no different. Bitcoin is down about 8% on Friday, while Ethereum is down 9%. Shiba Inu (SHIB), which recently made 50% in just 24 hours, is trying to keep its loss below 10%.
In the last 24 hours, $ 550 million worth of liquidations took place in the cryptocurrency market. The overall crypto market cap is down about 7% and stands at $1.09 trillion. Liquidation numbers are likely to grow as Bitcoin is in a downward spiral.
Why is the market bleeding?
Markets reacted to the minutes of the FOMC Meeting, while the Fed indicated that it is planning more rate hikes to reduce inflation. The US central bank has not publicly announced the upcoming interest rates. But the minutes show that policymakers are determined to raise interest rates again.
Policymakers agreed that inflation rates were not subsidized despite previous attempts to tame inflation. Therefore, the Fed is more likely to raise interest rates again in September. The decision will be approved at the next minutes meeting to be held on September 20 and 21. The Fed is reportedly planning to double its balance sheet reduction rate in September. However, the report was not approved until the Feds announced the next rate hike. After the FOMC Meeting and the release of the minutes, the markets lost their composure. Cryptocurrency markets are crashing today. cryptocoin.comWe have quoted the titles of the meeting in this article.
How did miners predict the last drop?
According to the latest data, Bitcoin miners sold around 6,000 BTC in just two weeks. Crypto analyst Ali Martinez stated that miners decided to take advantage of the recent rise of BTC to make some profit:
Bitcoin miners seem to have taken advantage of the recent surge to make a profit. The data shows that miners have sold 5,925 BTC worth about $142 million in the last two weeks.
#Bitcoin miners appear to have taken advantage of the recent upswing to book profits. Data shows that miners sold 5,925 $BTC in the last two weeks, worth roughly $142 million. pic.twitter.com/slcO7SstOZ
— Ali (@ali_charts) August 19, 2022
Let’s also mention that Bitcoin faced a big drop today. BTC is down almost 8% in the last 24 hours. Thus, it found a bottom at $21,344.56 during the day. At the time of writing, the world’s largest cryptocurrency is trading at $21,518.27. In addition, the fear around the Bitcoin bottom continues.
