Here’s Why $80 Billion Was Wiped Off The Crypto Market
September 14 2022 - 4:00PM
NEWSBTC
Over the last 24 hours, a substantial amount has been wiped off the
crypto market. Billions of dollars were taken off the market cap as
cryptocurrencies such as bitcoin lost about 10% of their value in
the same time period. Following this, Charles Hoskinson, founder of
the Cardano network, has shared his thoughts on what caused the
market to crash. Inflation Is The Culprit Taking to Twitter,
Cardano founder Charles Hoskinson explained that the high inflation
rate was the reason behind the market crash. It is no secret that
the inflation rate of the United States has been climbing in the
last couple of months, and the most recent CPI data report saw
another increase in inflation, triggering panic across the
financial markets. Related Reading: Investor Sentiment Sees Sharp
Positive Spike Following Crypto Market Recovery On the headline
inflation, there was only about a 0.1% increase according to the
CPI data, while core inflation rose 0.6%. However, despite these
numbers not being ‘large’ compared to previous inflation growth
rates, it showed that inflation was not slowing down. With the
year-over-year inflation rate now sitting at 8.3%, it triggered a
massive sell-off in the market. Hoskison shared a report from
CNBC that showed that the crypto market was not the only one hit in
the sell-offs that accompanied the release of the CPI data. The DOW
had fallen 1,200 points in a single day, which was the largest
single-day drop recorded in the last two years. Market cap drops to
$951 billion | Source: Crypto Total Market Cap on TradingView.com
Hoskinson’s statements on the topic of inflation were, “I remember
attending a dinner party in Abu Dhabi and sitting next to a famous
economist who told me inflation had nothing to do with printing
massive sums of money. The people in charge are a delusional cult.
You get the bill.” Related Reading: Bitcoin Must Hold This Level Or
Risk Falling To $10,000 The crypto market has lost a total of $80
billion in the last 24 hours, which has brought the total market
cap below $1 trillion once more. Now, the market looks toward the
FOMC meeting that is planned to happen at the start of next week.
The decision will also have a significant impact on the market. But
before then, the Ethereum Merge presents another event that could
have an impact on the market. Bitcoin’s strong correlation with the
stock market is also having an impact on the market. This means
that for there to be a recovery in the crypto market, a recovery in
the stock market would help it along. However, with the inflation
rates remaining so high, recovery may remain far off until there is
more positive news. Featured image from Forkast, chart from
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