Cryptos Plummet Amidst A Dollar That Leaps On Fed Fears

Cryptocurrencies plummeted in early European trade, amidst the Dollar’s strength that saw the Dollar Index rising to 108.08, versus 107.49 on Thursday and 106.57 on Wednesday. The Dollar strengthened in the backdrop of the minutes of the July meeting of FOMC showing a Fed that is inclined to raise rates further in order to tackle inflation. Concerns about a slowdown in China and fears of a painful recession too dampened market sentiment.

Crypto market capitalization has fallen to $1.03 trillion, from the level of $1.12 trillion early on Thursday. Barring the stablecoins, only 79th ranked Gnosis (GNO) has survived the sell-off to trade in the green zone. GNO gained more than 4 percent overnight and 2 percent in the past week.

Post the sell-off, Bitcoin’s dominance dropped below 40 percent. It is currently at 39.8 percent. Ethereum’s market share is at 20.2 percent whereas stablecoins’ share increased to 14.9 percent of the overall market. The share of the residual altcoins in the overall crypto market has fallen to 25.1 percent.

Bitcoin has dropped by a whopping 8.8 percent overnight in the past 24 hours to trade at $21,471.44. BTC is trading 9.4 percent lower on a weekly basis, 9.5 percent lower on a monthly basis and 55 percent lower on a year-to-date basis. Only 47 percent of BTC holders are in the money at current prices.

Ether too is trading lower on an overnight, weekly and year-to-date basis. However, it is still holding on to gains of 6 percent on a monthly basis. Ether’s current price of $1,705.80 is lower 8.22 percent on an overnight basis. 51 percent of ETH holders are in the money at current prices.

33rd ranked Filecoin (FIL), 29th ranked Flow (FLOW) and 78th ranked STEPN (GMT) are the biggest losers among the top 100 cryptocurrencies, with losses of close to 18 percent.

35th ranked ApeCoin (APE), 97th ranked Gala (GALA), 50th ranked Zcash (ZEC), 62nd ranked THORChain (RUNE), 57th ranked Fantom (FTM) and 96th ranked Oasis Network (ROSE) have also lost more than 15 percent in the past 24 hours.

In tandem with the overall decline in market capitalization, major categories too have lost market cap in the past 24 hours. Among cryptocurrency categories enjoying market dominance of more than 1 percent, NFTs and Collectibles, Research, Metaverse, Scaling and Gaming are the most impacted with overnight losses of more than 13 percent.

Governance and Yield Farming categories have suffered losses more than 12 percent. The Decentralized exchanges category is 11.6 percent lower following the crypto market carnage. DeFi and Web 3 categories too have declined more than 10 percent. In the case of Smart Contracts and Centralized Exchanges category, the overnight losses are less than 9 percent. Stablecoins are however steady in market capitalization.

In the NFT category, losses were led by the massive losses in FLOW and APE which topped the laggards list. Both declined more than 17 percent. In the Research category it was the 15 percent drop in 8th ranked Cardano (ADA) that dragged market capitalization.

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